Lots of Labor News

The Bureau of Labor Statistics just released its monthly Jobs Report for June along with its weekly statistics on Jobless Claims. In June Non-Farm Payrolls rose by 4.8M against an expected increase of just 3.23M. The Unemployment Rate fell to 11.1% and that’s lower than the 12.5% rate that was forecast. The U-6 Underemployment Rate fell to 18% from 21.3%. Manufacturing picked up 356k new jobs while Leisure and Hospitality gained just over 2M as tentative reopening efforts were begun. Retail Trade was another big gainer with a pick-up of 740k. The Labor Force Participation Rate rose by 0.7% to 61.5%. The Employment/Population Ratio rose even further to 54.6% from 52.8%. Average Hourly Earnings fell 1.2% and Average Weekly Hours Worked also fell slightly to 34.5 from 34.7. Again, these numbers are somewhat skewed by the fluid nature of reopening impacts. This morning’s report also upwardly revised the jobs count for the last two months by 90k. As has been the case throughout the pandemic, the level of precision is marred by difficulties in conducting surveys, gathering data, and interpreting worker classifications. But, the Bureau thinks that the errors that plagued last month’s report have been, to some degree, corrected.

Initial Jobless Claims for the week ending June 27th rose by 1.427M and that was slightly higher than the 1.35M that was expected. Continuing Claims for the week ending June 20th fell slightly to 19.29M from 19.522M.

The better-than-expected June report has induced a mild sell-off in Treasuries with the Ten-Year’s yield sneaking up on 0.7%. Equity markets appear to be more affected by the news and are likely to start the day will into the green. Crude oil is little changed at around $40 while gold is off a couple dollars to $1,767.