In the United States, employment data in June sent a weak signal. New recruitment was lower than expected in the market, and the data for the first two months had been revised, indicating that the expansion of enterprise use continued to slow. Although the unemployment rate had fallen to a low level over the past year, it was uneven within the labour market.
April and May data were modified
The United States Department of Labor has simultaneously adjusted non-farm employment data for the previous two months. The combined number of new jobs in April and May was reduced by 74,000, which means that previously published recruitment performance was better than actual.
This adjustment indicates that the dynamism of the United States job market in recent months is weakening, rather than maintaining the faster rate of growth shown earlier.
Reduction of 61,000 posts in the leisure and hotel industry
In terms of industry distribution, the most obvious delays in June were in the leisure and hotel industries. The industry lost 61,000 jobs that month. The United States Department of Labor attributed this decline to the weakness of seasonal recruitment, which contrasted with May's performance.
While overall employment remained positive, the fall in the sector indicated that the recruitment structure was not stable and that some service workers were beginning to weaken.
Labour force participation rate reduced to 61.5 per cent
In addition to the slowdown in new employment, the labour force participation rate fell to 61.5 per cent. The fall in this indicator means a decrease in the number of people entering or remaining in the labour market.
Taken together, the report presents a divisive picture: unemployment has fallen, but slower recruitment, lower front value repairs and lower participation rates indicate that the United States labour market is losing some of its dynamism. Such data usually influence the market ' s judgement of the Fed ' s subsequent interest rate path and affect equity and risk asset performance.