Service industries such as real estate firms and restaurants unexpectedly grew at a faster pace in April as the biggest part of the economy picked up after a weak start to the year.
Employers in March added the fewest workers since December 2013 and the jobless rate held at 5.5 percent as companies sought to bring U.S. headcounts in line with an economy that throttled back at the start of the year.
More Americans filed applications for unemployment benefits for the first time in five weeks, displaying the typical year-end holiday swings that make the data difficult to interpret.
Payrolls rose in 33 states in June and the unemployment rate fell in 22, adding to signs the labor market was making progress in the worlds largest economy.
Service industries expanded in April at the fastest pace in eight months, a sign the biggest part of the U.S. economy will bolster growth this quarter.