Nonfarm payrolls increase 209,000 in June
Unemployment rate falls to 3.6 from 3.7 in May
Hourly earnings increase 0.4; up 4.4 yearonyear
Average workweek rises to 34.4 hours from 34.3 hours

WASHINGTON, July 7 Reuters The U.S. economy added the fewest jobs in 212 years in June, but persistently strong wage growth pointed to stilltight labor market conditions that most certainly ensure the Federal Reserve will resume raising interest rates later this month.

The Labor Department39;s closely watched employment report on Friday also showed 110,000 fewer jobs were created in April and May, indicating that higher borrowing costs were starting to dampen businesses39; appetite to continue boosting headcount. There was also a jump in the number of people working parttime for economic reasons last month, in part because their hours had been reduced due to slack work or business conditions.

Nevertheless, the pace of jobs growth remains strong by historical norms and added to data this week showing an acceleration in services sector activity in suggesting that the economy was nowhere near a longforecasted recession.

The payroll numbers gave a whiff of weakening, but the labor market remains strong, said Sean Snaith, the director of the University of Central Florida39;s Institute for Economic Forecasting. By no means is the Fed39;s work done. We39;re in a protracted battle against inflation, and nothing in today39;s report suggests otherwise.

Nonfarm payrolls increased by…