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US nonfarm payrolls less than expected. Why jobs growth wobbles?
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💡Summary Nonfarm payrolls in June increased by 209,000, lower than the 497,000 ADP private payroll data. The unemployment rate decreased もっと見る
💡Summary
Nonfarm payrolls in June increased by 209,000, lower than the 497,000 ADP private payroll data.
The unemployment rate decreased to 3.6% in June against last month's 3.7%. June's jobless rate was lower than before.
Employment in construction continued to trend up in June.
Average hourly earnings were up 0.4% month-on-month, which was more than the 0.3% the previous month.
The main item on yesterday's June FOMC meeting, some Fed officials wanted to proceed with a rate hike at that gathering, while almost all agreed that additional tightening would be needed.

Nonfarm Payrolls in the US rose 209,000 in June, the US Bureau of Labor Statistics reported on Friday. This reading came in below the market expectation of 225,000. May's increase of 339,000 got revised lower to 306,000.

A weak report would look like a contradiction given the ADP, but payrolls are still the dominant driver. The market will also have an eye on the US CPI next week. Data in the week ahead will shine a light on inflation development in the U.S. with CPI taking centre stage on Wednesday. The consensus is looking for the headline rate to drop to 3%, but given that this is mainly down to known base effects, it will likely be outweighed by core inflation remaining uncomfortably high at 5%.

🎙️Q:
1. How long does it really take to find a new job?
2. Did the data just crash the Fed's pivot party?
3. Will the Fed raise interest rates again?

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