US Adds 206,000 Jobs in June Despite Rise in Unemployment Rate
The US labor market added 206,000 nonfarm payroll jobs in June, surpassing the 190,000 jobs expected by economists, according to data from the Bureau of Labor Statistics. Despite this job growth, the unemployment rate rose unexpectedly to 4.1%, its highest level since November 2021. This increase in the jobless rate, which had been expected to remain steady at 4%, signals a cooling job market.
The stock market has traded at record highs this week amid softer economic data, including inflation readings that suggest the US is on a "disinflationary path." Investors are anticipating two interest rate cuts this year, with the most likely occurring in September. This situation presents a conflicting scenario for the Federal Reserve, which has maintained high interest rates while seeking better inflation readings before making any adjustments. The state of the economy remains a significant issue for President Biden as the November election approaches.
