The unemployment rate rose in June to 4.9 per cent from 4.7 per cent. The uptick occurred for mostly positive reasons: more Americans began seeking work, a sign of growing confidence in their job prospects even though many had not yet found employment.
Job growth came mostly from retailers, health care and social assistance providers, and the large restaurant and recreation industry.
The US economy added 287,000 net new jobs - its best performance for eight months - smashing estimates following two previous months of weak hiring.
June payrolls were boosted by the return of 35,100 striking workers at Verizon Communications Inc.
The unemployment rate, which is derived from a different data set, rose to 4.9% in June from 4.7% the month before.
Analysts remained cautious over what the hiring surge means for the economy going ahead, saying United States businesses could remain cautious in the coming months, concerned Britain's vote to withdraw from the European Union, which is expected to hit economic growth in Britain and Europe.
The bounceback in payroll employment largely reflected service-producing jobs jumping higher in the month following a negligible gain in May.
The May report had inflamed fears that the economic recovery was stalling and weighed on the monetary policy of the Federal Reserve, which last month deferred another increase in interest rates. Monthly non-farm payroll gains averaged nearly 230,000 in 2015, and 172,000 so far this year. CNNMoney's survey of economists projected only 177,000 job gains. May's payroll count was revised down to only 11,000 from the previously reported 38,000. The good news is that this moderates the slowdown in job growth that many expected, which will provide some relief to jittery financial markets. The yield on the 10-year U.S. Treasury note this week touched a record low of 1.34 percent, though it rose to a still very low 1.4 percent after Friday's jobs numbers.
The strong rebound in June payrolls added to data on consumer spending and housing in suggesting that economic growth accelerated from the first-quarter's anemic 1.1 percent annualized rate.
Leisure and hospitality added 59,000 jobs, after little change in May.
The number of persons unemployed less than 5 weeks increased by 211,000 in June, following a decrease in the prior month.
In May the unemployment rate had fallen from 5.0 percent to 4.7 percent after the volatile data showed a huge number of people had dropped out from the labor force. Finding "good paying jobs" has become a key issue on the 2016 campaign trail.