June 2024 jobs report: What labor market data says about the economy
The economy added 206,000 jobs last month, according to fresh government data, but unemployment inched above 4% for the first time in over two years.
The economy added 206,000 jobs last month, according to fresh government data, but unemployment inched above 4% for the first time in over two years.
The June jobs report, released Friday morning by the Bureau of Labor Statistics, showed somewhat hotter hiring than the 200,000 nonfarm job gains economists had expected. That marked a slowdown since May, whose level was revised down to 218,000 from 272,000. April's job gains were also revised sharply lower, showing 111,000 fewer roles added during those prior two months than earlier thought.
"The June rise in nonfarm payroll was slightly higher than expectations, but the big downward revisions to April and May are the story," Kathy Jones, chief fixed income strategist at Charles Schwab, posted on X Friday. "Job market is slowing down."
The U.S. labor market has for months defied long-running forecasts of a sharper pullback. Instead, prospects for workers have generally remained robust even as employers ease up on hiring. The latest report shows conditions are gradually tightening.
Workers' pay continues to rise, with average hourly earnings up 3.9% in June from the year before. That's still higher than pre-pandemic — and still outpacing inflation, at 3.3% as of May — but marks the smallest annual increase since May 2021.
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