June jobs report likely to point to resilient labor market
Circle Squared Alternative Investments founder Jeff Sica discusses the rapid expansion of artificial intelligence on «Varney & Co.»
All eyes will be on the June jobs report when it is released Friday morning as investors look for clues about the labor market's health in the face of higher interest rates and sticky inflation.
The Labor Department's high-stakes June payroll report, due at 8:30 a.m. ET, is projected to show that hiring increased by 225,000 last month and that the unemployment rate inched lower to 3.6%, according to a median estimate by Refinitiv economists.
That would mark a drop from the 339,000 in May and the 290,000 monthly average recorded over the previous six months. However, it is slightly above the average pre-pandemic monthly increase.
«The economic expansion will just not die despite the twin inflation and interest rate shocks over the past two years,» said Joe Brusuelas, RSM chief economist. «Growth and unemployment rates at these levels are not only a sign of an extraordinary recovery from the previous recession, but also are a sign that this is not your parents’ labor market.»
MAJORITY OF WORKERS REGRET QUITTING DURING ‘GREAT RESIGNATION
The Federal Reserve is closely watching the report for evidence that the labor market is finally softening after months of surprisingly healthy job gains as policymakers try to wrestle inflation under control. Although the consumer price index has cooled from a peak of 9.1% in June 2022, it remains about three times higher than the pre-pandemic average despite 10 consecutive interest-rate hikes.
PRIVATE SECTOR JOB GROWTH UNEXPECTEDLY SURGES BY 497,000 IN JUNE, ADP SAYS
Hotter-than-expected job and wage data on Friday could be a worrisome sign for the
Read more on foxbusiness.com
