The June jobs report crushed expectations in almost every way. U.S. companies added 288,000 payrolls in June, smashing expectations for just 215,000. And May’s number was revised up to 224,000 from 216,000.
The unemployment rate unexpectedly fell to 6.1% from 6.3% even as the labour force participation rate was unchanged at 62.8%.
And economists are overall euphoric.
“Nirvana. It is the exact report we discussed yesterday. Headline – Great! Revisions – Higher. Private – Great! Household – Even better than establishment. Unemployment Rate – Low and that was with a stable participation rate. No material wage growth, but good enough. Hours stable. A great report.”-Peter Tchir, Brean Capital
“Kaboom! This report sure is one red-hot firecracker of an economy exploding the myth that growth isn’t strong enough to create jobs, isn’t strong enough to withstand a rate hike… There is no devil in the details. No hidden dark clouds for the outlook. Participation rate steady, wages are ok, +0.2%, those not in the labour force who actually want work plummeted, those out of work more than 6 months plummeted.” -Chris Rupkey, Bank Of Tokyo-Mitsubishi
“We see no chinks in the armour of this report, and the broad-based nature of the jobs gains along with the improvement across a broad swathe of labour market indicators causes us to give this report and A+. Add to this the fact that the acceleration in jobs growth comes on the heels of four solid monthly reports and we have every reason to believe that the US economic recovery is now on a higher trajectory, and there is every indication to believe that this higher level of activity is sustainable.” – Millan Mulraine, TD Securities
“The June employment report was stronger than expected across the board.” -Jan Hatzius, Goldman Sachs
“The evident strength of the labour market in June is one of the key reasons why we think that the Fed will be persuaded to begin raising interest rates earlier than most expect. The unemployment rate hit a near six-year low of 6.1% last month and the average pace of job gains has accelerated to the fastest average seen in this recovery.” -Paul Ashworth, Capital Economics
“US June employment report reflects robust labour market.” -Dean Maki, Barclays