MercoPress. South Atlantic News Agency

US jobs data for June disappoints markets: unemployment again at 9.2%

US employment growth ground to a halt in June, with employers hiring the fewest number of workers in nine months, dousing hopes the economy would regain momentum in the second half of the year.

Non-farm payrolls rose only 18,000, the weakest reading since September, the Labour Department said on Friday, well below economists' expectations for a 90,000 rise. The unemployment rate climbed to a six-month high of 9.2%, even as jobseekers left the labour force in droves, from 9.1% in May.

US stocks index futures fell sharply on the data, while US bond prices rose. The dollar rose against the Euro.

The government revised April and May payrolls to show 44,000 fewer jobs created than previously reported.

The report shattered expectations the economy was starting to accelerate after a soft patch in the first half of the year. It could prompt calls for the Federal Reserve to consider further action to help the economy, but Fed officials have set a high bar.

The US central bank wrapped up a 600 billion USD bond-buying program last week designed to spur lending and stimulate growth.

Hopes were high that the economy was starting to find firmer ground as motor vehicle manufacturers ramped up production and gasoline prices descended from their loft levels.

Economic activity in the first six months of the year was dampened by rising commodity prices and supply chain disruptions following Japan's devastating earthquake in March.