U.S. June Job Data Exceeds Expectations, Unemployment Rate Drops to 4.1%
Economy/Markets

U.S. June Job Data Exceeds Expectations, Unemployment Rate Drops to 4.1%

The latest employment report from the U.S. shows a significant increase in jobs, altering expectations for Federal Reserve monetary policy.

U.S. June Job Data Exceeds Expectations, Unemployment Rate Drops to 4.1%

The strong numbers seemingly put to rest any idea that the Fed might cut rates in July.

Key Points:

  • U.S. nonfarm payrolls increased by 147,000 in June, easily exceeding forecasts of 110,000.
  • The unemployment rate fell to 4.1%, against expectations of a rise to 4.3%.
  • Following the release of the report, the price of Bitcoin dipped back below $109,000.

The U.S. employment situation showed substantial strength in June, reinforcing Federal Reserve Chairman Jerome Powell’s position to remain patient regarding monetary policy adjustments. Nonfarm payrolls showed a growth of 147,000 last month, according to the Bureau of Labor Statistics. This indicates a slight increase from May’s revised job growth of 144,000 (previously reported as 139,000).

In terms of earnings, hourly wages rose by 0.2%, which fell short of expectations of 0.3% and a previous 0.4% in May. Comparatively, the year-on-year increase in average hourly earnings stood at 3.7%, against forecasts of 3.9%.

Today’s employment report was delivered a day early owing to the July 4 holiday weekend, with decreased trading hours for U.S. markets.

Market Impact: After the data was released, odds of the Fed holding steady at its next monetary meeting in late July jumped from 75% to 95%, while expectations for a rate cut in September decreased to 78%.

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