MNI BRIEF: US Unemployment Ticks Up To 4.1% In June

U.S. employers added 206,000 workers in June, more than the 190,000 analysts had expected, but revisions took away 110,000 in the two prior months and the unemployment rate edged up a tenth to 4.1%. Gains were led by government (70,000), health care (49,000), social assistance (34,000) and construction (27,000), the Bureau of Labor Statistics said Wednesday.

Unemployment has risen half a percentage point in the past year. Federal Reserve officials projected last month that it would end the year at 4.0% and peak at 4.2% next year and Chair Jerome Powell has said the central bank was prepared to lower interest rates in the face of unexpected weakness in the labor market. (See: MNI INTERVIEW: Dec Fed Cut Doubtful If Trump Wins - Obstfeld)

Average hourly earnings rose 3.9% in June from a year earlier, slowing from 4.1% in the previous month and in line with expectations.