Along with the 213,000 jobs added in June, the jobs numbers for April and May were also revised to include 37,000 additional new hires across those months, according to data released Friday by the Bureau of Labor Statistics.
The unemployment rate ticked up to 4% from 3.8%, as the strong labour market encouraged more people to look for work. Average hourly earnings growth remained 2.7% against hopes of a slight pick-up to 2.8%.
Still, the healthy job gains will likely push down unemployment the rest of the year, economists say.
The report also shows that the share of workers who have multiple jobs remained stable over the past year at 4.8 percent.
Policymakers at the Federal Reserve, the U.S. central bank, monitor the report because they can raise interest rates when employment is close to full, wages are rising healthily and unemployment is low.
The US added 213,000 new jobs for the month, well above analyst expectations, but the jobless rate rose 0.2 points to four percent, erasing May's improvement.
Private employment rose by 202,000 (median estimate 190,000) after increasing 239,000; government payrolls rose by 11,000, most since August. As executives say they can not find enough qualified workers, some are turning to hiring people who are incarcerated or people with disabilities.
Black unemployment rose to 6.5 percent from a record low of 5.9 percent; the Hispanic rate fell to a record low of 4.6 percent. Manufacturing and professional and business services saw gains, with 36,000 and 50,000 jobs added, respectively.
Wage growth slowed in June.
Regina, Saskatchewan has a higher unemployment rate than Windsor, but may actually have more people working.
Wage growth is barely keeping ahead of inflation, which is firming up as the economy strengthens. That's consistent with other reports showing strength in factory activity. The U.S. central bank increased interest rates last month for the second time this year and has projected two more rate hikes by year end. A separate measure, average hourly earnings for production and nonsupervisory workers, also increased 2.7 percent from a year earlier, unchanged from the prior month's gain.
Rather than being an omen of bad things to come, the rise suggests a positive outlook for the USA economy as it coincides with more than 600,000 people entering the labor force.
New entrants, including blue-collar workers and teenagers, shouldn't have much trouble finding a job. These women weren't previously counted as unemployed due to their not actively looking for work.
As unemployment rose, the closely watched labor force participation rate also edged higher to 62.9 per cent, while the number of people counted as unemployed rose to 6.6 million people, up almost a half million.