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05/07/24
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Although Economy in U.S. Adds 206K Jobs in June, Unemployment Rate Rises
In June, the economy in the U.S. added more jobs than expected, although the number was lower than the previous month, indicating a possible easing in labor demand in the world’s biggest economy.
According to Friday’s Labor Department data, last month’s nonfarm payrolls were at 206K, down from May’s 218K. The reading for May was also revised heavily lower from the initial level of 272K, while April’s was decreased by 57K to 108K.
Economists had expected the June number to be at 191K.
The largest job increases were in the health services and education sectors, which helped offset losses in logging, mining, and retail trade.
The unemployment rate edged up to 4.1%, the highest level since Nov. 2021 and higher than expectations that it would be the same at the May number of 4.0%. Average hourly wage growth month-on-month slowed slightly from 0.4% to 0.3%, as per estimates.
Data earlier in the week showed that last month, private payroll additions eased, and the quits rate was steady, indicating possibly decreasing wage pressures.
In theory, momentum leaving the jobs market may contribute to easing inflation. Moderating price gains would then fuel hopes that the Fed would reduce interest rates in 2024 from more than two-decade highs.
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