"US Hiring Slows Sharply, Curbing Recent Momentum in Job Growth Bloomberg reported that US hiring slowed sharply in June even as the unemployment rate fell, curbing some of the budding momentum in job growth this year. Nonfarm payrolls increased 57,000 last month after downward revisions to the prior two months, according to Bureau of Labor Statistics data out Thursday, well below the 113,000 median estimate. The unemployment rate fell to 4.2% as labor force participation plunged, below the 4.3% median estimate. Average hourly earnings rose 0.3% month-over-month, in line with expectations. The report suggests the labor market still faces challenges despite signs of strength in recent months. The pullback in hiring was led by the biggest decline in leisure and hospitality payrolls since 2020, with retail" means that the US job market weakened more than expected in June.
In simple terms, employers added far fewer jobs than economists expected, which shows that hiring demand is slowing. Although the unemployment rate fell to 4.2%, that was not necessarily a sign of strength, because it happened partly because fewer people were participating in the labor force. In other words, some people may have stopped looking for work, which can make the unemployment rate look better even when hiring is soft.
The passage also highlights that some sectors, especially leisure and hospitality, retail, and information, lost jobs, while healthcare and social assistance remained stronger. Wage growth of 0.3% month over month suggests pay is still rising at a steady pace, but not fast enough to offset the concern created by weak hiring.
Overall, the post is saying that the US labor market is still slowing down beneath the surface, even if one headline number, the unemployment rate, looked slightly better. For markets, this can matter because weaker job growth may increase expectations that the Federal Reserve could become more cautious about keeping interest rates high.
DYOR
@Binance News
$SPY
In simple terms, employers added far fewer jobs than economists expected, which shows that hiring demand is slowing. Although the unemployment rate fell to 4.2%, that was not necessarily a sign of strength, because it happened partly because fewer people were participating in the labor force. In other words, some people may have stopped looking for work, which can make the unemployment rate look better even when hiring is soft.
The passage also highlights that some sectors, especially leisure and hospitality, retail, and information, lost jobs, while healthcare and social assistance remained stronger. Wage growth of 0.3% month over month suggests pay is still rising at a steady pace, but not fast enough to offset the concern created by weak hiring.
Overall, the post is saying that the US labor market is still slowing down beneath the surface, even if one headline number, the unemployment rate, looked slightly better. For markets, this can matter because weaker job growth may increase expectations that the Federal Reserve could become more cautious about keeping interest rates high.
DYOR
@Binance News
$SPY