The US labor market showed signs of cooling in June as US employers added 206,000 jobs, reflecting the resilience of America's consumer-driven economy [69a8dab9] [f1383073]. This marked the 42nd consecutive month of job growth, although the job growth in June was slightly lower than May's figure of 218,000 [1b9ceda2] [6da56c33] [de6790b8] [f1383073]. The government was the top job creator, adding 70,000 new positions, while job losses were centered on professional and business services, retail, and manufacturing [ea59f3f1] [f1383073]. The number of people working two or more jobs dipped, and full-time positions declined while part-time workers increased [ea59f3f1] [f1383073]. Jobs for foreign-born workers increased, while employment opportunities for native-born workers fell [ea59f3f1] [f1383073]. The US economy created around 1.3 million new jobs in the first six months of 2024 [ea59f3f1] [f1383073].
The unemployment rate rose from 4% to 4.1%, the highest rate since November 2021, as 277,000 people began looking for work [69a8dab9] [f1383073]. Average hourly earnings eased to 3.9% year-over-year, the smallest rise since June 2021 [ea59f3f1] [69a8dab9] [f1383073]. The labor force participation rate edged up to 62.6% [ea59f3f1] [f1383073]. Despite the increase in job growth, the weakening jobs market could support the case for the Federal Reserve to cut interest rates [ea59f3f1] [69a8dab9] [f1383073]. The Fed is expected to cut interest rates in September, and investors are anticipating the first rate cut at the September policy meeting [ea59f3f1] [f1383073]. Economists predict that the job market will lose momentum due to high interest rates, but signs of an economic slowdown have already emerged [69a8dab9] [f1383073]. The US GDP grew at a slow pace of 1.4% from January through March, and consumer spending rose at just a 1.5% pace last quarter [69a8dab9] [f1383073]. The number of advertised job openings has declined since peaking in March 2022 [69a8dab9] [f1383073]. Despite the slowdown, most workers are enjoying job security [69a8dab9] [f1383073]. The state of the economy is a concern for voters as the presidential campaign intensifies [69a8dab9] [f1383073].
Glassdoor senior economist Daniel Zhao, Longview Economics director and senior market strategist Harry Colvin, and Interactive Brokers chief strategist Steve Sosnick discussed the implications of the positive employment data for the US economy [564efb84]. Sosnick suggested that the economy is beginning to decelerate and questioned what actions the Federal Reserve will take in response. Colvin highlighted the softness in the job market, particularly in small companies, and its implications for inflation and interest rates. Zhao noted that the cooling labor market is in line with policymakers' expectations of a slowdown to control inflation. The experts also discussed the market's reaction to the jobs report and the potential impact of President Biden's policies on the economy. Overall, they agreed that while the job market is cooling, it remains resilient, and the economy is experiencing a soft patch rather than a recession. They anticipated volatility in equity markets but believed that the corporate sector is in good shape [564efb84].
In other news, a Native American tribe in North Dakota is planning to build a massive greenhouse complex, aiming to create jobs and boost the local economy [f9a4dbbf]. Additionally, an Oscar-winning filmmaker is helping an art theater in Ohio secure a grant to support art and culture in the community [f9a4dbbf].
Pongamia trees are gaining attention for their potential as a source of renewable energy and plant-based protein. These trees can be grown on marginal lands and produce oil-rich seeds that can be used for biofuel production [f9a4dbbf].
The parent company of Saks Fifth Avenue is set to acquire Neiman Marcus for $2.65 billion, which is expected to strengthen the luxury retail market and create new opportunities for growth [f9a4dbbf].
The European Union (EU) has announced plans to increase tariffs on Chinese electric vehicles as a response to China's trade practices, aiming to protect the EU's domestic electric vehicle industry [f9a4dbbf]. Meanwhile, Chinese automaker BYD has opened an electric vehicle plant in Thailand, contributing to the growth of the electric vehicle market in Thailand and the Southeast Asian region [f9a4dbbf].
Air travel complaints have risen in 2023, with passengers reporting issues such as flight delays, cancellations, and poor customer service. Authorities are working to address these concerns and improve the overall travel experience [f9a4dbbf].
Teen summer employment is at its highest rate since 2007, providing wage opportunities for teenagers in the hospitality industry [00a10306] [f1383073]. The economy is still experiencing a bifurcation, with those who have capital assets feeling flush and those living paycheck to paycheck struggling to make ends meet [00a10306] [f1383073].