Source: Fortune
Summary
The June jobs report showed a weaker labor market than expected, with payrolls rising by only 57,000 and revisions to April and May’s numbers reducing the recent hiring pace. The unemployment rate dropped to 4.2%, but this was due to a fall in labor force participation. Economists and analysts expressed disappointment and concern, noting that wage growth remains solid, but job creation is cooling. The report’s sector details showed a mixed picture, with some industries losing jobs while others saw small gains.
Our Reading
The numbers tell one story.
Payrolls rose, but revisions weakened the recent hiring pace. Labor force participation fell, driving the unemployment rate down. Economists like Daniel Zhao and Jeffrey Roach expressed concern about the trend of people giving up looking for work. Wage growth remains solid, but job creation is cooling. The report’s sector details showed a mixed picture, with some industries losing jobs while others saw small gains. The labor market is still expanding, but only modestly.
The announcement sounds familiar: a mixed picture with a weak jobs report, but still enough to keep inflation concerns alive.
Author: Evan Null
