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- The US economy added 206,000 jobs in June, more than the forecast of 191,000.
- The unemployment rate rose from 4.0% in May to 4.1% in June.
- Data released earlier this week showed job openings rose slightly from 7.9 million in April to 8.1 million in May.
The US labor market came in just a touch hotter than expected, adding 206,000 jobs in June. Meanwhile, the unemployment rate unexpectedly rose from 4.0% in May to 4.1% in June.
According to the forecast noted on Investing.com, the US economy was expected to add 191,000 nonfarm payrolls in June.
According to a news release from the Bureau of Labor Statistics on Friday, job growth for May was revised from 272,000 to 218,000, and April's job growth was revised from 165,000 to 108,000. That's a pretty hefty revision, with 111,000 fewer jobs created than what was previously stated for April and May, the BLS news release on Friday said.
Government jobs saw robust growth in June, with a gain of 70,000. Healthcare added 48,600 jobs. Manufacturing and retail trade saw declines in their employment. Professional and business services did as well, with a loss of 17,000.
Investing.com noted that the forecast for June's US unemployment rate was 4.0%. For the last few years, the unemployment rate has been at a historically low level, and while inflation is still stubborn, Nobel Prize-winning economist Joseph Stiglitz recently told Business Insider how remarkable it was that the inflation rate had cooled so quickly — after the rate skyrocketed to 9.1% in June 2022 — while the unemployment rate didn't have to surge as it came down.
Stock futures slightly ticked up after the report, as the mixed signals from the headline job growth number and increase in the unemployment rate could mean more willingness from the Fed to cut interest rates this year.
Other measures show continued strength. Labor force participation includes those working and those actively looking for work, and this rate rose from 62.5% in May to 62.6% in June. The share of prime-working-age Americans, or those aged 25-54, with a job remained steady at 80.8%.
Wage growth moderated. Average hourly earnings increased from $33.70 in June 2023 to $35.00 this past June, a 3.9% increase, a bit lower than the year-over-year rate in May of 4.1%. Average hourly earnings also rose from $34.90 this past May, or by 0.3%.
Other job market data out earlier this week showed that job openings and quits didn't change that much in May, with openings rising by 221,000 from 7.9 million in April to 8.1 million in May. The quits rate has been 2.2% for seven straight months, and there were 3.5 million quits in May.
"In May, the labor market continued to come into better balance — with openings holding steady and separations remaining low," Elizabeth Renter, senior economist at NerdWallet, said in a written commentary earlier this week, adding that the new data was "further encouragement that the current labor market supports continued inflation moderation and that a September rate cut could still be at play."
This is a developing story. Please check back for updates.