The unemployment rate rose to 4.1% for the first time since November 2021. The data is likely to reassure the Federal Reserve as wage growth is slowing to more sustainable levels.
US job growth is slowed down in June compared to the previous month, while the unemployment rate rose to 4.1%. That means employers added 206,000 jobs in June, according to data released Friday by the Bureau of Labor Statistics (BLS).
Economists surveyed by the Wall Street Journal and Dow Jones Newswires expected the jobs report to show 200,000 new jobs created for June, with the unemployment rate holding around 4%.The BLS also reported that it revised downward its job growth figures for the previous two months.. May employment figures fell by 54,000 to 218,000while the April number fell by 57,000 to 108,000.
Average hourly earnings rose 0.3% in June from the previous month and were 3.9% higher than the same month last year, both meeting economists’ expectations. Treasury yields fell after the BLS report was released, as investors weigh whether the jobs figures will help give the Federal Reserve confidence to consider cutting its benchmark interest rate in the coming months.
Some Federal Reserve officials have said that now that inflation is slowing and they are watching the labor market more closely, since sudden changes in unemployment levels could prompt the central bank to act more quickly in reducing interest rates.
Earlier this week, the ADP employment report showed that private sector job growth in June slowed for the third consecutive month.
June jobs report: What the market is looking at
The latest jobs report also showed signs of deterioration in the labor market that could influence the Federal Reserve to cut interest rates soon. The increase in new jobs last month slightly exceeded the 200,000 forecast of economists surveyed by The Wall Street Journal.
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Reuters
However, the government also reported that 111,000 fewer jobs were created in May and April than originally reported. In addition, one-third of new hires in June were in the U.S. government. Meanwhile, private-sector employment increased by a relatively low 136,000.
Meanwhile, the unemployment rate rose to 4.1% for the first time since November 2021. The lowest unemployment rate was 3.4% 14 months ago.
Wages rose again in June, but the increase in pay to workers over the past year slowed to 3.9% from 4.1%. This coincides with the lowest level in three years and is likely to reassure the Federal Reserve that wage growth is slowing to more sustainable levels.
Source: Ambito
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