The pace of U.S. hiring accelerated in June, with payrolls gaining the most in 10 months, suggesting businesses are having greater success recruiting workers to keep pace with the economy's reopening.

Non-farm payrolls increased by 850,000 last month, bolstered by strong job gains in leisure and hospitality, a Labor Department report showed Friday. The unemployment rate edged up to 5.9 percent because more people voluntarily left their jobs and the number of job seekers rose. The median prediction in a Bloomberg survey of economists had been for a 720,000 rise in June payrolls.

"Things are picking up," said Nick Bunker, an economist at the job-search company Indeed. "While labor supply may not be as responsive as some employers might like, they are adding jobs at an increasing rate."