June jobs report, Federal Reserve

U.S. employers added 206,000 jobs in June, more than expected and slightly below the revised 218,000 added in May, a sign the labor market remains solid. The unemployment rate ticked up slightly to 4.1% vs. 4%. 

This as both April and May data points were adjusted lower by a combined 111,000, signaling fewer jobs created. This may please the Federal Reserve, which is looking for signs inflation is easing. 

U.S. stocks rose following the report. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 39273.64 -34.36 -0.09%
SP500 S&P 500 5539.07 +2.05 +0.04%
I:COMP NASDAQ COMPOSITE INDEX 18239.366456 +51.06 +0.28%

Average hourly earnings, another inflation tracker, rose 3.9% year-over-year, in-line with estimates.  

TWO-THIRDS OF AMERICANS ARE FALLING BEHIND, CAN’T MAKE ENDS MEET

Hiring was the strongest for government, social assistance and healthcare, while the retail and manufacturing sectors shed workers. 

This follows the closely watched ADP report which showed companies added 150,000 jobs last month, missing the 160,000 gain that economists surveyed by Refinitiv predicted and down from the revised 157,000 figure in May.

Both data points, closely watched by the Federal Reserve, will influence when policymakers will begin their long anticipated rate-cutting cycle. Chairman Jerome Powell, speaking earlier this week, reiterated the need for inflation to be lower. 

WHITE-COLLAR WORKERS ARE STRUGGLING TO FIND JOBS AS THE LABOR MARKET SLOWS

“We want to be more confident that inflation is moving sustainably down toward 2% before we start the process of reducing, how tight our policy is,” he said during remarks at the European Central Bank Forum. 

Market watchers are currently pricing in the first-rate cut at the September meeting, according to the CME’s FedWatch Tool, which tracks the probability of rate moves. 

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