The May Jobs Report caught many analysts and economists off guard with job growth missing expectations by a significant margin
It’s been an up and down start to 2019 when it comes to the economy and job market, with some months showing strong results (like April
) and others falling short of estimates.
Given the May numbers, many individuals were anxiously awaiting the release of the June 2019 Jobs Report to see if the job market had either continued its negative trend or once again rebounded.
On July 5th
, the Bureau of Labor Statistics released their latest data. Let’s take a closer look at the results!
224,000 Jobs Were Created in July, Exceeding Estimates
When the May report was initially released, just 75,000 jobs were added to the economy (revisions brought this number down to 72,000). Experts had predicted that around 180,000 jobs would be created, which was a significant miss.
With all eyes on the June results, the data didn’t disappoint. The economy added 224,000 jobs
with estimates coming in around 160,000 to 170,000.
These results help to ease concerns from analysts and American citizens that a recession could be coming.
Additionally, this data could also impact the Federal Reserve and whether or not a Fed rate cut could happen. With a meeting scheduled for the end of July, policymakers will use these results in their decision making.
Overall, the United States economy has added an average of 171,000 jobs
over the last 3 months.
Wage Growth Remains at 3.1%
Another closely monitored number over the last year has been wage growth. It began to hit 3% year-over-year in mid-2018 but hasn’t increased much more since. The last few months have seen wage growth sit at 3.1%. What did the June number look like?
Average hourly earnings increased by 6 cents to $27.90, which equates to 3.1% increase year-to-year
– keeping this result unchanged once again.
The stalled wage growth numbers are causing concern among some economists, while others believe a similar result to last year, when numbers picked up after the summer, will occur.
Time will tell if wages continue to stall or increase over the coming months.
Unemployment Slightly Increases in June
The unemployment rate in the United States has hovered around a 50 year low in recent months, with this number sitting at 3.6% in May.
In the June Jobs Report, unemployment rate increased slightly to 3.7%
, missing expectations of 3.6%. But despite the slight rise, most analysts are not concerned.
The broader measure of unemployment, which includes discouraged workers and those who are underemployed, also saw a marginal increase from 7.1% in May to 7.2% in June
Additionally, the labor force participation rate
was 62.9% in June which was the best result since March.
The June Jobs Report Eases Economic Concerns
Given some of the results so far in 2019, especially May’s poor numbers, many were concerned about the future of the United States economy.
But June’s Jobs Report is a positive sign that the economy might not be heading towards a recession in the immediate future.
We will have to wait for the July data to see if the positive numbers continue.
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