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June Job Growth Accelerates at a Faster Pace than Expected
In June, job growth went up at a faster pace than expected, which indicates that the U.S. economy’s main pillar is still strong even with some pockets of weakness.
Nonfarm payrolls went up 372,000 in June, which was better than the Dow Jones estimate at 250,000. It also continues what has been a strong year when it comes to job growth, as per data from the Bureau of Labor Statistics that was published on Friday.
However, unchanged from May was the 3.6% unemployment rate, which is still in line with estimates. Another measure of unemployment, which considers discouraged workers and individuals with part-time jobs for economic reasons, went down, tanking to 6.7% from 7.1%.
“The strong 372,000 gain in non-farm payrolls in June appears to make a mockery of claims the economy is heading into, let alone already in, a recession,” senior U.S. Economist Andrew Hunter from Capital Economics, stated.
After the news got out, stocks opened slightly weaker as government bonds were significantly higher. The 10-year treasury managed to yield 3.05% at around 9:30 am ET, which is still under the 3.103% 2-year yield. This economic relationship is called an inversion, which is historically known to be a reliable signal for a recession.
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