(USA TODAY) -- Employers added a better-than-expected 195,000 jobs in June, as the labor market continued to withstand huge federal spending cuts and tax increases, and a eurozone recession.
The unemployment rate was unchanged at 7.6%, the Labor Department said Friday.
Economists had estimated that 165,000 jobs were added last month, according to a consensus forecast.
Also encouraging: job gains for April and May were revised up by a total 70,000. April's increase was revised to 199,000 from 149,000, and May to 195,000 from 175,000.
In June businesses added 202,000 jobs, while federal state and local governments cut 7,000. The growth was broad-based, with leisure and hospitality, professional and business services, retail, health care and finance all showing solid gains.
Expectations for strong employment gains were fueled by a payroll processor ADP's report this week that the private sector added 188,000 jobs in June.
Yet the economy has been mixed lately. Home sales have hit pre-recession levels and consumer confidence has surged for three straight months. But reports have shown consumer spending and manufacturing weakening. And last week, the government revised down its estimate for first-quarter economic growth to an annual rate of 1.8% from 2.4%.
Some analysts worry that $85 billion in across-the-board federal budget cuts and a January increase in payroll taxes may still inflict their most severe damage to the economy this summer.
And the Federal Reserve rattled stock and bond markets recently by saying it could rein in its massive stimulus later this year and end it by mid-2014, assuming the unemployment rate falls to 7% by then.