U.S. Job Growth Misses Estimates In June But Unemployment Rate Edges Lower
(RTTNews) - The Labor Department released a report on Thursday showing employment in the U.S. increased by much less than expected in the month of June.
The report said non-farm payroll employment rose by 57,000 jobs in June after jumping by 129,000 jobs in May.
Economists had expected employment to climb by 114,000 jobs compared to the addition of 172,000 jobs originally reported for the previous month.
The increase in employment came amid job growth in the professional and business services, social assistance and health care sectors.
On the other hand, the report said employment in the leisure and hospitality sector slumped by 61,000 jobs, while the retail sector also cut jobs.
The Labor Department also said the unemployment rate edged down to 4.2 percent in June from 4.3 percent in May. The unemployment rate was expected to remain unchanged.
The unexpected dip by the unemployment rate came as the household survey measure of employment plunged by 507,000 persons but the labor force also shrank by 720,000 persons.
The report also said average hourly employee earnings climbed by $0.13 or 0.3 percent to $37.64 in June.
The annual rate of growth by average hourly employee earnings ticked up to 3.5 percent in June from 3.4 percent in May, in line with expectations.
"Overall, this report shows a job market that is a bit shakier than the May data had indicated, but inflation still remains too high," said Mortgage Bankers Association SVP and Chief Economist Mike Fratantoni.
He added, "MBA expects the Federal Reserve will keep the federal funds rate unchanged through the remainder of this year, but anticipates that their next move will be a hike in early 2027."
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