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Payrolls and wages increased in June

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U.S. payrolls and wages rose and the unemployment rate held steady last month, a sign that the job market could sustain economic growth, Bloomberg reported.

Employers added 132,000 workers in June, following a 190,000-worker increase in May. The unemployment rate stayed at 4.5 percent. The service industries experienced the largest gains, adding 135,000 workers last month, after hiring 199,000 more workers in May. Meanwhile, manufacturers’ payrolls fell by 18,000 in June, after declining by 7,000 a month earlier.

Workers’ average hourly earnings increased 6 cents, or 0.3 percent, in June after a 0.4 percent increase in the previous month. Earnings were up 3.9 percent from a year ago. Wage gains are encouraging consumer spending and economic expansion, despite high gasoline prices and declining home values. However, Federal Reserve policy-makers worry that a low unemployment rate and rising labor costs could cause prices to increase.

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