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US job growth beats forecasts

US job growth beats forecasts

US economy has rebounded from the low levels in the first quarter thanks to the big boost in hiring in June 2016.
According to the Labor Department, the US added 287,000 new jobs in June. In the meantime, analysts had expected a rise by 180,000 jobs.
May’s figure was revised down from 38,000 jobs to 11,000. However, data for April showed upward revision to 144,000 jobs from 123,000.
The unemployment rate went up to 4.9% in June from 4.7% in May, while experts had anticipated a rise to 4.8%. That was mainly due to the fact that about 35,000 Verizon employees returned to work after the end of their strike.
Strong labor market data means the Fed would hike rates. Still, most experts doubt the regulator will make a decision to raise rates in the near future due to global economic uncertainties.
Currently, markets see a 24% chance of a rate hike by the Fed in 2016. Before the release of the Labor Department’s report, there was a 15% possibility.
The US manufacturing sector added 14,000 new jobs in June. The services sector saw a rise of 256,000 jobs. Retailers added nearly 30,000 workers, while private employment rose by 265,000 jobs. Government added 22,000 jobs, education and healthcare added 59,000 jobs. Average hourly wages rose by 0.1% in June from May and advanced by 2.6% on a yearly basis.

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