The official jobs report from the Bureau of Labor Statistics came in today showing that there were 73,000 new jobs created last month. This was lower than the 110,000 jobs that were anticipated. The big shock though was that the prior two months were revised down by a cumulative 258,000 jobs, meaning that there were only 19,000 new jobs created in May and 14,000 in June. That brings the average for the year to only 77,000 new jobs per month, roughly 40% of what we need to keep our growing society gainfully employed.
Moreover, the household survey shows that there were an additional 260,000 more people out of work this month than last month. Full-time jobs decreased by 440,000 while part-time jobs increase 240,000. That brings the Unemployment Rate up a tick to 4.2%. After holding interest rates steady this week, Jerome Powell said further cooling in the labor market would call for future rate cuts. I think we’re there, Mr. Powell.
From a technical analysis, interest rates are now moving below a ceiling of resistance that should allow them to slip further downward over the coming few weeks. The absence of any meaningful reports next week might prolong that movement however. In the trailer.
