Overview
- The Bureau of Labor Statistics reported on Thursday that nonfarm payrolls rose by 57,000 in June and that April and May were revised down by a combined 74,000 jobs.
- The unemployment rate edged down to 4.2 percent but that decline was driven in part by a 0.3 percentage-point drop in labor force participation and a 507,000 fall in household employment.
- Average hourly earnings increased 3.5 percent year over year in June, a pace that remains below recent inflation and leaves real pay under pressure.
- Job gains were uneven across industries with a 61,000 loss in leisure and hospitality while professional and business services, health care, and social assistance added jobs.
- Private payrolls data from ADP showed a 98,000 gain in June and announced planned layoffs fell 53 percent, creating mixed signals for markets and Federal Reserve policy decisions.