US job growth misses forecasts, inflation and wage stagnation persist
In June, the United States saw an increase of just 57,000 nonfarm payroll jobs, significantly lower than the 115,000 that economists from Dow Jones Newswires and the Wall Street Journal had anticipated. The Bureau of Labour Statistics reported a slight decrease in the unemployment rate to 4.2 percent. Additionally, revisions for April and May revealed a total reduction of 74,000 jobs from previous figures. This disappointing data emerges as the midterm election approaches, posing a challenge for President Donald Trump's Republican Party. Nevertheless, the Federal Reserve is not projected to modify its labor market policies amid ongoing inflation and stagnant wages impacting the economy.
Key facts
- Nonfarm payroll employment grew by 57,000 in June.
- Unemployment rate fell to 4.2 percent.
- Economists had forecast 115,000 jobs.
- April and May job gains revised down by 74,000.
- Data released by the US Bureau of Labour Statistics.
- Weak growth comes ahead of midterm elections.
- Rising inflation and wage stagnation are ongoing.
- Federal Reserve not expected to intervene on labor mandate.
Entities
Institutions
- US Bureau of Labour Statistics
- Dow Jones Newswires
- Wall Street Journal
- Federal Reserve
Locations
- United States