Increase in Unemployment Rate: Does the Unemployment Rate Affect Crypto?

Increase in Unemployment Rate: How Will the 206K New Jobs Impact the US Economy?

The US labor market remained quite strong in June. 206,000 new jobs were added, the US Bureau of Labor Statistics reported on Friday. Although this figure was lower than the 218,000 jobs added in May, it modestly exceeded economists’ expectations of 190,000 jobs. The unemployment rate rose to 4.1% in June from 4.0% in May, again above forecasts for 4.0%.

• In contrast to May’s 0.4% and the estimates for 0.3%, average hourly wages increased by 0.3%.
• When comparing the metric year over year, it was 3.9% higher than the previous month’s 4.1% reading and 3.9% higher than forecast.

Biggest Unemployment Rate Since November 2021

According to the CME FedWatch tool, traders were placing almost no likelihood of a rate decrease by the US Federal Reserve at the bank’s July 31 meeting, but more than a 70% chance of a rate drop at the mid-September meeting, ahead of this morning’s data. In his remarks this week, Fed Chair Jerome Powell adopted a slightly dovish tone, speculating that when the central bank makes decisions on monetary policy going forward, concerns about inflation may be subordinated to a worse labor market.

• Despite exceeding predictions, the headline of 206,000 new jobs indicates some weakness, according to other data.
• May’s job growth was altered from 272,000 to 218,000.
• The 165,000 employment increase for April that was first announced was lowered down to 108,000.
• The average job gain for the three months is 177,000, down from 249,000 in the previous quarter.
• The 4.1% reading is the highest since November 2021, despite the jobless rate just slightly increasing.

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