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Jobs seen boosting hopes of an economic revival

Jul 7, 2011, 9:09 p.m.

"We expect to see job growth in the second half of the year of around 200,000 a month, that will shave the unemployment rate a bit," said Abruzzese. "We do think the unemployment rate by the end of the year will probably be down in the mid-8 percent (range), maybe a little bit lower than that."

The private services sector is expected to account for most of the job growth in June. Manufacturing payrolls are expected to have rebounded after contracting in May for the first time in seven months, with the recovery mostly reflecting a step-up in motor vehicle production.

Construction employment will likely continue to surprise on the upside, despite weakness in the housing market. Construction payrolls have increased since February.

Government employment is expected to have declined for an eighth straight month as municipalities and state governments continue to wield the ax to balance their budgets.

The report is expected to show the average work week unchanged at 34.4 hours. Employers have been reluctant to extend hours because of the uncertainty surrounding the recovery, and a rise in the workweek would be a sign that more permanent hiring is in the cards.

Average hourly earnings are expected to edged up 0.2 percent after rising 0.3 percent in May, which would do little for cash-strapped consumers but reassure financial markets wage-driven inflation is not a risk.

(Reporting by Lucia Mutikani; Editing by Leslie Adler)

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