Job gains and wage gains missed expectations in June.
In June, the US economy added 223,000 jobs while the unemployment rate fell to 5.3%.
Wages were flat against the prior month and rose 2% over the prior year, missing expectations.
May’s big gain of 280,000 jobs was also revised lower to 254,000 while the combined April and May reports were revised lower by 60,000.
Over the last 3 months, job gains have average 221,000.
All in all, this report still shows a US economy that is creating jobs at a solid rate while wage gains continue to be nowhere to be found, a key missing component of the economic recovery. Wage growth, however, was the biggest component that economists were looking for ahead of this report.
Digging deeper into the report, average weekly hours worked remained steady at 34.5 in June while the U-6 unemployment rate — which includes those who are working part-time for economic reasons — fell to 10.5%. The labour force participation rate also fell to a new post-crisis low of 62.6%.
Here’s what Wall Street was looking for ahead of the report:
- Nonfarm payrolls: +233,000
- Unemployment rate: 5.4%
- Average hourly earnings, month-on-month: +0.2%
- Average hourly earnings, year-on-year: +2.3%
More to come …