The employment part of the economy continued to power forward in June, adding another 213,000 jobs though the unemployment rate rose to 4 percent, according to a government report Friday.

Economists surveyed by Reuters had expected a nonfarm payrolls gain of 195,000 and the jobless rate to hold steady at 3.8 percent, which had been tied for the lowest since 1969.

In addition to the payroll gains, average hourly earnings rose 2.7 percent year over year, a bit below expectations of a 2.8 percent increase.

Despite increasing talk about the economy being near full employment, hiring continues to grow. Along with June's upside surprise, the Bureau of Labor Statistics revised April's count up from 159,000 to 175,000 and May's from 223,000 to 244,000, a total of 37,000 more than initially stated.

Markets reacted positive to the report, with the S&P 500 and Dow pointing to a flat opening on Wall Street after being negative earlier.

The increase in the unemployment rate came due to a rise in the labor force participation rate, which increased 0.2 percentage points to 62.9 percent. A more encompassing measure of unemployment that includes discouraged workers and those at part-time jobs for economic reasons also rose two-tenths, to 7.8 percent.

Along with the rise in overall unemployment, the rate for blacks, which had been at a record low 5.9 percent, jumped

Professional and business services led the way with 50,000 new jobs while manufacturing added 36,000. Health care was up 25,000 and construction gained 13,000. Retail lost 22,000 jobs.

The employment-to-population ratio held steady at 60.4 percent, tied for the highest level since January 2009.

"The employment report this month demonstrates yet again the robust strength of the labor market," said Steve Rick, chief economist at CUNA Mutual Group. "After a red-hot May, June kept up steady momentum in jobs and certainly hit back at any worries among economists who thought hiring was beginning to plateau after an inconsistent past few months."

The report comes amid hopes that the economy is beginning to shift into high gear. GDP rose just 2 percent in the first quarter but is widely projected to increase close to 4 percent for the second quarter. CNBC’s Rapid Update tracker of economist expectations is putting the expected gain at 3.8 percent.

Federal Reserve policymakers are watching the numbers closely.

The central bank already has increased its benchmark interest rate twice this year and has indicated two more hikes before the end of 2018.

However, minutes released Thursday from the June Federal Open Market Committee meeting indicate some concern about the jobs market. Read more at CNBC