Jul 5, 2019

U.S. jobs market rebounds with 224,000 jobs in June

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Data: Bureau of Labor Statistics; Chart: Axios Visuals

The U.S. economy added 224,000 jobs in June — far more than the 165,000 economists were expecting, while the unemployment rate edged slightly higher to 3.7% and wages grew at an annualized pace of 3.1%, the Labor Department said on Friday.

Why it matters: This is a significant rebound from the weak jobs report in May, calming concerns that the labor market — the standout of the 10-year U.S. economic expansion — was losing momentum at a rapid pace. It may, however, complicate financial markets' expectations of a series of interest rate cuts by the Federal Reserve starting as soon as this month.

Details:

  • May's numbers were weaker than initially thought at 72,000 (from 75,000). So were April's, which were revised lower by 8,000 jobs.
  • Employment growth has averaged 172,000 per month so far this year — a slower pace than the average monthly gains of 223,000 last year.
  • One big bright spot: the manufacturing sector added 17,000 jobs in June after several months of cooling. But the industry has averaged 8,000 jobs per month — a sharp drop from the average 22,000 jobs gained per month last year.

What they're saying:

  • "[D]espite other weak areas in the US economy, job growth is still holding up, which should continue to bolster consumer confidence and spending," Patrick Chovanec, chief strategist at Silvercrest Asset Management, tweeted in part.

The backdrop: Stocks have soared to all-time highs on hopes that the Fed would step in with a rate cut in response to signs of weakening in the economy. Bond yields, which jumped in response to the jobs report, have dropped to multi-year lows in recent months on concerns that a recession could be imminent.

  • The strong report doesn't necessarily take a rate cut off the table at this month's Fed meeting — particularly since inflation has been so weak — but the numbers help make the case for cutting rates by 25 basis points instead of 50 basis points.
  • After the jobs report, traders eased bets that the Fed would 100% cut rates later this month.

Go deeper

Trump touts press briefing "ratings" as U.S. coronavirus case surge

Photo: Drew Angerer/Getty Images.

President Trump sent about a half-dozen tweets on Sunday touting the high television ratings that his coronavirus press briefings have received, selectively citing a New York Times article that compared them to "The Bachelor" and "Monday Night Football."

Why it matters: The president has been holding daily press briefings in the weeks since the coronavirus pandemic was declared, but news outlets have struggled with how to cover them live — as Trump has repeatedly been found to spread misinformation and contradict public health officials.

World coronavirus updates: Total cases surge to over 700,000

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens and confirmed plus presumptive cases from the CDC

There are now than more than 700,000 confirmed cases of the coronavirus around the world, according to data from Johns Hopkins. The virus has now killed more than 32,000 people — with Italy alone reporting over 10,000 deaths.

The big picture: Governments around the world have stepped up public health and economic measures to stop the spread of the virus and soften the financial impact. In the U.S., now the site of the largest outbreak in the world, President Trump said Saturday he would issue a "strong" travel advisory for New York, New Jersey and parts of Connecticut.

Go deeperArrowUpdated 41 mins ago - Health

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 2 p.m. ET: 704,095 — Total deaths: 33,509 — Total recoveries: 148,824.
  2. U.S.: Leads the world in cases. Total confirmed cases as of 2 p.m. ET: 132,637 — Total deaths: 2,351 — Total recoveries: 2,612.
  3. Federal government latest: The first federal prisoner to die from coronavirus was reported from a correctional facility in Louisiana on Sunday.
  4. Public health updates: Fauci says 100,000 to 200,000 Americans could die from virus.
  5. State updates: Louisiana governor says state is on track to exceed ventilator capacity by end of this week — Cuomo says Trump's mandatory quarantine comments "really panicked" people
  6. World updates: Italy on Sunday reported 756 new deaths, bringing its total 10,779. Spain reported almost 840 dead, another new daily record that bring its total to over 6,500.
  7. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

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