US Jobs Report Shows Strong Growth in June but Unemployment Rises

US Jobs Report Shows Strong Growth in June but Unemployment Rises

Ever since Biden took office, he has had government agencies play an old game perfected by the Soviets. This game is simple, lie, and lie, and lie…then when exposed days after the faulty and fabricated figures are released, they make sure their media hide the correction on page 43 in papers and not let the story air on networks. Welcome to Soviet USA where we can no longer trust anything that comes out of DC.  But let’s entertain them and their fake data for this release…

The U.S. labor market delivered a stronger-than-expected performance in June, adding 208,000 jobs, though the unemployment rate saw a slight increase to 4.1%. This mixed signal comes at a time when the broader economy appears to be slowing down. Over the first half of 2024, the economy has generated approximately 1.3 million new jobs, according to the Bureau of Labor Statistics (BLS).

Despite the supposed positive job growth, some indicators show signs of cooling. Average hourly earnings grew by 0.3% over the month, a decrease from the previous month’s 0.4%, aligning with economists’ predictions. Year-over-year, wage increases slowed to 3.9% from 4.1%. The labor force participation rate saw a minor increase to 62.6%.

Government sectors led the job creation in June, adding 70,000 positions. Other significant contributions came from healthcare, social assistance, and construction sectors. Meanwhile, the number of long-term unemployed surged by 166,000, reaching 1.5 million.

Amidst this, disparities continued between U.S.-born and foreign-born workers, with the former experiencing a significant job decrease over the past year, while the latter saw substantial gains.

Financial markets reacted modestly to the jobs report, with major indices showing little change. The Treasury yields dipped, reflecting a shift in investor sentiment possibly favoring an upcoming interest rate cut by the Federal Reserve. The 10-year yield fell to 4.31%, and the 2-year yield dropped below 4.65%.

The dollar also weakened, with the U.S. Dollar Index falling below 104.90 after the report. Market analysts suggest that the mixed job data could strengthen the case for the Federal Reserve to lower interest rates soon. Indeed, many expect a rate cut potentially as soon as September, depending on continued signs of economic cooling and progress towards the Fed’s inflation target.

Key Points:

  • Job Growth: The U.S. economy added 208,000 jobs in June, surpassing expectations.
  • Unemployment Rate Increase: Despite job growth, the unemployment rate rose slightly to 4.1%.
  • Wage Growth Slows: Average hourly earnings growth slowed, increasing by only 0.3% month-over-month.
  • Sector Contributions: Significant job additions were noted in government, healthcare, and construction.
  • Market Reaction: Financial markets showed modest changes, but Treasury yields fell, suggesting anticipation of a potential Federal Reserve rate cut.

TL Holcomb – Reprinted with permission of Whatfinger News

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