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US hiring slows more than expected

However, unemployment fell to 3.6%, spelling more rate hikes

07 July 2023

US non-farm employment change for the month of June showed an addition of 209k to the workforce, just under most forecasts of a 230k gain. However, this number is probably not what the Federal Reserve (Fed) wants to keep seeing if it wants to continue pausing rate hikes. Average hourly earnings were also up more than expected, rising 0.4% on the month and showing a 4.4% advance year-on-year. The broader unemployment rate fell to 3.6%. The US economy looks far from softening. This means hikes are back on the agenda and we should expect the Fed to raise rates later this month.

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Charles Hepworth

Investment Director
My Insights

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