The United States economy added jobs but the numbers were a little disappointing. That is the message coming from the experts after the June jobs report was published Thursday morning. The U.S. economy added 223,000 jobs, while the expectation was for the economy to hit 230,000 jobs added in the month of June. The discrepancy is one that will add debate to the true health of the economy, and will provide plenty of debate throughout the month of July, as Republican White House hopefuls make their case for the highest office in the land.
The U.S. economy also saw a decrease in the overall unemployment rate, which ticked lower from 5.5% to 5.3%. The overall numbers were positive, and moving in the right direction, but still showed the growth that is being left behind in the market. As far as jobs are concerned, many experts attributed the decline in unemployment rate to a reduction of overall workforce. This is a problem that has plagued the Obama Administration throughout the time after President Barrack Obama took office.
The report is a reminder that things are moving in the right direction, and they are certainly not stale by any means, but growth is still being left out there – as experts expected a greater pickup heading into the summer months. This also comes at a time when the Federal Reserve is talking about raising interest rates, but at this point, it’s something that simply cannot happen unless the circumstances are perfect.
Consider the fact that there is still a ton of uncertainty in the market and the continued problems in Europe, with Greece, and the Eurozone as a whole, and every portion of the market in the U.S. is feeling the pinch. Whether we’re talking about production job that rely on heavy trade to Europe, or workload which comes from the Eurozone, any uncertainty makes for a challenging summer in the U.S. despite the leaps that the economy has made on its own.
Kate Warne of Edward Jones investments pointed out that, “People had expected a stronger report after the very strong report in May. Instead what we’re seeing is still just grinding higher.” She went on to point out that, “It’s strong enough to support stock prices, it’s strong enough for the Fed to say they’re considering raising interest rates in the fall, and that’s where we stay.”
The big winners in June, as expected, were business, healthcare, and the retail sectors, adding 64,000, 40,000, and 33,000 jobs respectively. This perspective is something that has serious long-term implications on the job market this summer, so it will be interesting to see how this plays out heading into the fall when it could be impacting the Feds decision to raise interest rates.