Editor
June’s nonfarm payrolls dropped to 206,000 from 218,000 in May.
The U.S. stock market heads to end the fifth July trading session in a mixed way due to cooling labor market data. The U.S. job market has been one of the most anticipated reports this month. The Bureau of Labor Statistics report shows that the U.S. added 206.000 jobs in June, which is higher than market expectations and lower than the previous month’s added jobs. If this indicates one thing, the labor market is cooling, which could affect the Fed monetary policy as we enter the third quarter ending and the fourth quarter beginning months.
Kathy Jones, Chief Fixed Income Strategist at Charles Schwab, shared her opinion on the X platform. She said, “The June rise in nonfarm payroll was slightly higher than expectations, but the big downward revisions to April and May are the story. The job market is slowing down.”
Back to the report, the nonfarm payrolls in June have been revised from a May figure of 218.00 added jobs to 206.000 jobs in June. This is more concerning because, in the last three months, each pre-month was revised from the previous. Down below here are a few data points about how revising and competing with the labor market in the U.S.
- Nonfarm payrolls in June: 206,000 (down from 218,000 in May)
- May nonfarm payrolls be revised down to 218,000 (initially 272,000)?
- April nonfarm payrolls were revised down by 57,000 to 108,000.
- Economists’ expectation for June nonfarm payrolls: 191,000
As for the unemployment rate, the June rate scored the highest rate since November 2021. The data shows that the June unemployment rate was 4.1% above the average rate of 4%.
Scott Anderson, chief U.S. economist at BMO Capital Markets. Said, “We now have definitive evidence of labor market cooling with a somewhat alarming rise in the unemployment rate in recent months that should give policymakers’more confidence’ that consumer inflation will soon return to the 2.0% target on a sustainable basis.”
Hiring in June has been driven by acyclical sectors (healthcare, state, and local governments). by acyclical sectors (healthcare, state, and local governments), which is the highest number since December 2023. The healthcare sector added 49,000 positions, and the share of industries reporting job growth increased to 59.6% (from 56.4% in May). Additionally, professional and business services employment declined by 17,000 jobs, while temporary help employment dropped by 49,000 jobs (most since April 2020).
In additional data last month, private pay increased with a high suggestion of possibly waning wage pressures and the potential to reduce inflation due to colling labor market steam and wages. In terms of the federal reserve interest rates, marketers still have a high probability of cutting interest in September. As for the December decision, the monetary official is still monitoring the situation and gathering data from other economic reports.
Meanwhile, on Wall Street, two of the three indices in the stock market posted gains this Friday. The S&P 500 main benchmark was up by 0.28% to 5.525.90 bps, and the tech-heavy composite Nasdaq rose by 0.74% to 18.324.80 bps. While the Dow Jones industrial average was down by 0.16% to 39.264.7 bps,
