We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The June Non-farm Payroll Report was released before the bell this morning, bringing 287K jobs to the market — well ahead of the 150-170K range expected by a plurality of analysts. This follows a downwardly revised, sickly 11K in the month of May, which sent heads scratching across the country (when the tally was 38K) and kept the Fed from raising interest rates last month.
This is the biggest jobs beat in a long time. Too bad it follows the worst monthly performance of the last several quarters.
The Unemployment Rate rose to 4.9%, a result of more than 400K Americans re-joining the workforce. The Participation Rate came in at 62.7%. The long-term unemployed remains above 200K, however, so there is certainly room to improve in the U.S. labor market.
But private sector jobs gains of 265K is nothing to sneeze at — and it’s far better than the ADP ((ADP - Free Report) ) private sector jobs number of 172K released yesterday. While the ADP number has stayed roughly consistent month over month, the Bureau of Labor Statistics (BLS) report has shown wild volatility from 11K to 287K in the course of a month.
Instead of trying to figure out why there’s such a disparity, let’s pull back our focus a moment and show a 3-month average new jobs gains figure of 147K. True, today’s impressive number does bump up this average somewhat, but this is still a less-than-stellar number overall.
In fact, the overall pace of new employment does happen to be slowing, and looks to continue on this trajectory (barring a series of 250K increases in jobs for the next few months, of course). This indicates the market is finally seeing labor constraints, and a slight rise in hourly wages also bears this out.
Breaking down the jobs numbers by sector:
Leisure & Hospitality +59K Health & Social Services +58K Information +44K (largely a result of returning Verizon [(VZ - Free Report) ] workers) Professional/Business Services +38K Retail Trade +30K
The stock market definitely likes these numbers: while futures were up slightly prior to the jobs report, they swung toward a much higher open upon its release. And with a 3-month average jobs number still below 150K, common wisdom currently banks on the side of no Fed re-think regarding raising interest rates in the near term. Happy Friday!
Mark Vickery Senior Editor
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Got Your Jobs Correction Right Here!
Friday, July 8, 2016
The June Non-farm Payroll Report was released before the bell this morning, bringing 287K jobs to the market — well ahead of the 150-170K range expected by a plurality of analysts. This follows a downwardly revised, sickly 11K in the month of May, which sent heads scratching across the country (when the tally was 38K) and kept the Fed from raising interest rates last month.
This is the biggest jobs beat in a long time. Too bad it follows the worst monthly performance of the last several quarters.
The Unemployment Rate rose to 4.9%, a result of more than 400K Americans re-joining the workforce. The Participation Rate came in at 62.7%. The long-term unemployed remains above 200K, however, so there is certainly room to improve in the U.S. labor market.
But private sector jobs gains of 265K is nothing to sneeze at — and it’s far better than the ADP ((ADP - Free Report) ) private sector jobs number of 172K released yesterday. While the ADP number has stayed roughly consistent month over month, the Bureau of Labor Statistics (BLS) report has shown wild volatility from 11K to 287K in the course of a month.
Instead of trying to figure out why there’s such a disparity, let’s pull back our focus a moment and show a 3-month average new jobs gains figure of 147K. True, today’s impressive number does bump up this average somewhat, but this is still a less-than-stellar number overall.
In fact, the overall pace of new employment does happen to be slowing, and looks to continue on this trajectory (barring a series of 250K increases in jobs for the next few months, of course). This indicates the market is finally seeing labor constraints, and a slight rise in hourly wages also bears this out.
Breaking down the jobs numbers by sector:
Leisure & Hospitality +59K
Health & Social Services +58K
Information +44K (largely a result of returning Verizon [(VZ - Free Report) ] workers)
Professional/Business Services +38K
Retail Trade +30K
The stock market definitely likes these numbers: while futures were up slightly prior to the jobs report, they swung toward a much higher open upon its release. And with a 3-month average jobs number still below 150K, common wisdom currently banks on the side of no Fed re-think regarding raising interest rates in the near term. Happy Friday!
Mark Vickery
Senior Editor