The US economy added more jobs than expected last month as unemployment surprisingly rose
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- The US economy added 206,000 jobs in June, more than the forecast of 191,000.
- The unemployment rate rose from 4.0% in May to 4.1% in June.
- Data released earlier this week showed job openings rose slightly from 7.9 million in April to 8.1 million in May.
The US labor market came in just a touch hotter than expected, adding 206,000 jobs in June. Meanwhile, the unemployment rate unexpectedly rose from 4.0% in May to 4.1% in June.
According to the forecast noted on Investing.com, the US economy was expected to add 191,000 nonfarm payrolls in June.
According to a news release from the Bureau of Labor Statistics on Friday, job growth for May was revised from 272,000 to 218,000, and April's job growth was revised from 165,000 to 108,000.
Investing.com noted that the forecast for June's US unemployment rate was 4.0%. For the last few years, the unemployment rate has been at a historically low level, and while inflation is still stubborn, Nobel Prize-winning economist Joseph Stiglitz recently told Business Insider how remarkable it was that the inflation rate had cooled so quickly — after the rate skyrocketed to 9.1% in June 2022 — while the unemployment rate didn't have to surge as it came down.
Other job market data out earlier this week showed that job openings and quits didn't change that much in May, with openings rising by 221,000 from 7.9 million in April to 8.1 million in May. The quits rate has been 2.2% for seven straight months, and there were 3.5 million quits in May.
"In May, the labor market continued to come into better balance — with openings holding steady and separations remaining low," Elizabeth Renter, senior economist at NerdWallet, said in a written commentary earlier this week, adding that the new data was "further encouragement that the current labor market supports continued inflation moderation and that a September rate cut could still be at play."
This is a developing story. Please check back for updates.