Announced this morning, the economy added 850,000 jobs in June, more than expected. The Leisure and Hospitality industry was strong, adding 343,000 jobs, while Construction and Motor Vehicles & Parts industries were weak. The Unemployment Rate increased three tenths to 5.9%, when a decrease was expected; however, the labor force increased by 151,000 in the month as more people came back to look for work. The Labor Force Participation Rate was flat at 61.6%. Average Hourly Earnings increased 0.3% in June and is up 3.6% on an annual basis, both as expected. Average Weekly Hours was 34.7, one tenth lower than last month’s revised figure. A mixed report as more jobs were created with a higher unemployment rate, partly due to people returning to the labor force. Labor market dislocations still exist as many employers are struggling to find workers to meet increased demand, which will continue the debate on whether these dynamics will create higher wages and more inflationary pressures in the months ahead. In all, bond yields tick lower after fluctuating following the release of this morning’s data and equity futures are higher heading into the market open. Have a safe and happy 4th of July!
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