Brightening jobs picture may draw US Fed closer to tapering

The government revised payrolls for April and May to show 70,000 more jobs created than previously reported.

The closely watched employment report was released two weeks after US Federal Reserve chairman Ben Bernanke offered an upbeat assessment of the economys outlook and said the US central bank expected to start trimming its bond purchases later this year.

The employment report also showed weekly hourly earnings rose by the most since November. That,combined with other relatively upbeat data on housing,auto sales and manufacturing,makes it more likely the Fed will proceed with its tapering plan in September.

The central bank is closely watching the unemployment rate. It has said it expects the jobless rate to drop to around 7 per cent by the middle of next year,when it anticipates ending the bond purchases.