US nonfarm payrolls below expectations
US economy expected in June under created employment.
The US economy created net non-farm jobs in June, below expectations, signaling that the labor market is gradually moderating. Wage growth, on the other hand, remained solid.
Nonfarm payrolls rose a net 209k on Friday, according to data released by the Bureau of Labor Statistics.
May non-farm employment data was revised from 339 thousand to 306,000. The unemployment rate fell from 3.7 percent to 3.6 percent. Recent data indicate that the labor market has started to cool, as high interest rates and weak consumer spending negatively affect the economy.
But the labor market and wages remain firm enough, paving the way for the Fed to continue with rate hikes.
After the data, US bond yields fell, while there were slight movements in stock futures.
Employment was concentrated in a few sectors in June, such as healthcare, public sector and construction. Employment declined in the retail and transportation and storage sectors.
Decline in unemployment rate
The unemployment rate in the USA decreased by 0.1 percentage points to 3.6 percent in June.
The unemployment rate, which was in line with market expectations, was 3.7 percent in May.
The number of unemployed people in the country decreased by 140,000 in June to 5 million 957 thousand. The labor force participation rate, on the other hand, remained unchanged at 62.6%, the highest level since March 2020.
While the average weekly working hours increased to 34.4, the average hourly earnings, which the US Federal Reserve (Fed) watched carefully, increased by 0.4 percent to $33.58.
Market expectations were for average hourly earnings to increase by 0.3 percent over the period in question.
Analysts said that employment slowed more than expected in June, but the unemployment rate fell from a 7-month high and wage increases continued to show that labor market conditions remained tight.
