US Adds 224,000 New Jobs in June, Significantly Above Expectations
The total nonfarm payroll in the U.S. increased by 224,000 in June, according to the official employment report published by the Labour Department on July 5.
The official number is significantly above 160,000, which is what economists predicted for June in an earlier poll by Reuters. However, according to the Labour Department's report, the unemployment rate in the U.S. remains largely unchanged at 3.7%.
As per the Labour Department, the industries that added the most jobs last month were professional and business services, health care, and transportation and warehousing.
In the immediate aftermath of the report's release, major U.S. market indexes displayed a downward dynamic.
As of press time, Nasdaq Composite lost 46.94 points and is down by 0.57%. Dow Jones lost 121.19 and is 0.46% down, while S&P 500 is down by 16.74 and 0.56%.
According to CNBC, the downward momentum might be associated with the market's shifting expectations in regards to the possible Federal Reserve interest cut later this summer.
A number of earlier reports by business media outlets, such as CNBC, suggested that the U.S. Federal Reserve is closely monitoring the employment numbers as it deliberates whether to cut its interest rate this year.
Some economists predicted that several cuts of 0.25 or even 0.5 percentage points are likely this year. With the now-strengthened employment numbers, the Fed might be less inclined to follow through with a cut.