Non-agricultural payroll increases by 372,000 for June against 270,000 expected

Nonfarm payrolls rose 372,000 for June from 270,000 expected and 384,000 in May (revised down), the Labor Department reported Friday.

The big gain will stoke some inflation concerns and keep a very hawkish July Fed in play.

The the unemployment rate was 3.6%, unchanged.

The average hourly wage increased by 0.3%, in line with expectations. The activity rate fell to 62.2%.

Private payroll increased by 381K.

“Jobs growth is still *very* robust,” tweeted Nick Bunker, economist at Indeed. “The three-month moving average of monthly private sector earnings is 362,000. That’s only 1,000 less than in May.

He noted that the prime-age employment-to-population ratio fell to 79.8% from 80% in May. “Let’s hope it’s an aberration.

Short-term rates rose after the numbers, with the 2-year Treasury yield dropping from 3.11% to 3.11% just before the release. The 10-year rose to 3.07%. Stock index futures were liquidated.

“It’s a payrolls report that solidifies 75 basis points” for a Fed hike in July as the labor market isn’t slowing fast enough, BlackRock’s Jeffrey Rosenberg said on Bloomberg TV.

The jump in the news should also ease some of the fears that the United States is currently in a recession, but not that the Fed is jacking up the economy in one.