The Labor Department reported that nonfarm payrolls increased by 287,000 positions in June, more than the 180,000 positions consensus projection.
The Labor Department reported that nonfarm payrolls increased by only 38,000 positions in May, much less than the 160,000 positions consensus projection. Over the past 3 months, monthly job increases have averaged 116,000, down sharply from the average gain of 240,000 over the past two years.
The aging of the U.S. population has many implications, including: the potential negative effects on the growth of the economy; the fiscal impact on the federal government’s entitlement programs; and the impact on housing and care provision for seniors.
It’s likely that the Federal Reserve will regard this report as an indication of a slowing domestic economy. The April jobs number along with the weak GDP number reported for the first quarter will give pause to the Fed as it considers raising interest rates.
Decline in construction starts may suggest that the market is responding to well-publicized concerns about supply. Data for the second and third quarter will further illuminate this possibility.