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CHICAGO (July 5, 2013) – U.S. nonfarm payrolls for June painted a pretty optimistic portrait of the labor market and leave the call for the Federal Reserve to begin slowing their asset purchases in the fall intact, according to BMO Economics.

"The U.S. economy continues to create new jobs – as it has been for the past 33 months – and the pace has steadied," said Jennifer Lee, Senior Economist, BMO Capital Markets. "June nonfarm payrolls came in at 195,000, which was better than expected. And, there were upward revisions to the prior two months."

Ms. Lee said that the average so far in 2013 is about 202,000, which is the level that the Federal Reserve wants to see.

Meanwhile, the basic jobless rate was flat at 7.6%, a near 5-year low. "More cash landed in workers' pockets last month, with a 0.4 per cent rise in average hourly earnings – 2.2% above a year ago," noted Ms. L ee. "Employees put in more hours, as well, with aggregate hours worked growing 0.2% for the second consecutive month. The participation rate picked up for the second month in a row but is still very low, but it is a start."

Among specific industries, housing's strength was reflected in more hiring in the construction sector, retailers added more workers despite softer consumer spending and health care & social assistance continued their lengthy hiring streak. Meanwhile, education took a cut, federal & state governments became even leaner, but local governments bulked up for the 3rd straight month.

The complete report can be downloaded at http://www.bmonesbittburns.com/economics/econofacts/20130705a/econofacts.pdf

About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified financial services organization. With total assets of $555 billion as of April 30, 2013, and more than 46,000 employees, BMO provides a broad range of retail banking, wealth management and investment banking products and solutions.