Private Payrolls Exceed Expectations
(CoinUnited.io) — The ADP National Employment Report revealed that private payrolls soared by 497,000 jobs in June, surpassing economists’ predictions. The Reuters poll had projected an increase of 228,000 jobs. Additionally, a separate survey of economists suggests private payrolls likely rose by 200,000 jobs for the same period.Considering the anticipated growth in government employment, primarily driven by local government hiring of teachers, the total nonfarm payrolls are expected to have expanded by 225,000 jobs in June. This follows a surge of 339,000 jobs in May.These positive figures indicate the labor market’s resilience amid concerns of a potential economic downturn.
Labor Market Remains Steady Despite Growing Risks
Despite recent moderate increases in unemployment benefit claims, the overall labor market remains robust. Data revealed that the number of Americans applying for new jobless claims rose modestly last week. However, the substantial jump in private payrolls for June suggests that the labor market’s solid footing endures.These reports increase the probability of the Federal Reserve resuming interest rate hikes this month after a pause in June. The data also indicates that laid-off workers are experiencing shorter periods of unemployment.Rubeela Farooqi, the chief US economist at High-Frequency Economics in White Plains, New York, noted that the data does not yet reflect the anticipated rise in layoffs caused by more restrictive monetary policy.For the week ending July 1, initial claims for state unemployment benefits rose by 12,000 to 248,000, according to the Labor Department. In the first three weeks of June, claims reached a 20-month high of approximately 265,000 due to increased layoffs in sectors beyond technology and interest rate-sensitive industries like housing and finance.