U.S. employers added a strong 195,000 jobs in June, which marks the third months that job growth has been more than expected. This factor increases hopes for a more robust economy towards the end of 2013. Job growth makes it more likely that the Federal Reserve will slow its bond purchases, which have kept long-term interest rates low. 

Despite the job growth, unemployment rate remained the same at 7.6 percent but this is due to the fact that more people started looking for work in June – a positive sign. People are counted as unemployed only when they are looking for a job. 

According to the Labor Department, pay also increased last month, outpacing inflation. Furthermore, stocks opened higher an hour after the jobs report was released, a sign that investors think the economy is improving. 

Nonetheless, weak economies in other countries still cut demand for U.S. exports in May. This causes the economy to grow at a slow rate despite the addition of jobs. Most analysts expect growth will be at about the same rate as in the April-June quarter. 

ALSO SEE: Solid Job Numbers Increase Fear of Fed Bond Action

ALSO SEE: Eurozone Unemployment Reaches Record High

 

Reach Executive Producer Syuzanna Petrosyan here. Follow her on Twitter.