The U.S. unemployment rate fell to 4-year low of 5% in June as the economy added 146,000 payroll jobs, the Labor Department said Friday. Payroll growth was 48,000 under the 194,000 expected by economists, but April and May hiring were revised up by a total of 44,000. May's payrolls were revised to 104,000 from 78,000 previously. Economists had expected the jobless rate to remain at 5.1%. The unemployment rate was last at 5% in September 2001. Average hourly earnings rose 3 cents, or 0.2%, to $16.06 in June, as expected. Earnings are up 2.7% in the past year. The average workweek was unchanged at 33.7 hours in June. The factory workweek was also unchanged at 40.4 hours. Total hours worked in the economy rose 0.2%. Among 278 industries, 55% were hiring in June, down from 57% in May. The report shows continued improvement in the labor market. It is not likely to have much impact on the Federal Reserve's deliberations about whether to keep raising interest rates. The Federal Open Market Committee will have the July employment report in hand when it next meets on Aug. 9. In June, the survey of some 400,000 business establishments indicated modest growth of 150,000 jobs in services, while goods-producing industries lost 4,000 jobs, including 24,000 in manufacturing. It was the largest loss of factory jobs since January. Factory employment has fallen by 96,000 since August. Job losses were concentrated in the auto sector, which lost 18,000 jobs. Among 84 manufacturing industries, 35.7% were hiring in June, the lowest since October 2003. Construction firms added 18,000 jobs. In the services, professional and business services added 56,000 jobs in June. Temp help jobs contributed 9,000 jobs. Health-care added 25,000 jobs. Retail added 2,000 jobs in June, while leisure and hospitality added 19,000 jobs. The figures are seasonally adjusted. In a separate survey of 60,000 households, employment rose by 163,000, while unemployment fell by 161,000. The labor participation rate fell to 66% from 66.1%, while the employment-to-population ratio remained at 62.7%. The number of workers who've been out of work longer than six months fell sharply in June to 1.31 million from 1.53 million in May, representing 17.8% of all persons officially classified as unemployed. The average duration of unemployment fell to 17.1 weeks from 18.8 weeks.