The U.S. is expected to have added tens of thousands of jobs in June, continuing to defy high interest rates and stubborn inflation, But any signs of slower job and wage growth last month could signal the labor market may be cooling down.
Economists surveyed by Bloomberg project that 225,000 jobs were added to the economy in June while the unemployment rate is expected to have slipped to 3.6% – down from 3.7% the previous month. And a projected 4.2% average hourly wage bump over the previous June would be the smallest yearly uptick since 2021.
The mixed economic signals are unlikely to dissuade the Federal Reserve from raising interest rates at its next meeting on July 25-26 after the central bank decided to pause an unprecedented streak of hikes last month. The Fed has been making it more expensive for businesses and consumers to borrow in order to put a brake on inflation, which has eased since reaching a four-decade high in June 2022 but remains above the Fed’s 2% target.
When does the report come out?
The report from the Department of Labor will be released at 8:30 am ET Friday.
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