According to analyst at Standard Chartered, the overall reading of today’s NFP is medium-term positive for economic growth and modestly negative for inflation.
Key Quotes:
“The June employment situation report was relatively strong on net, primarily due to labour force expansion coupled with a rise in the labour participation rate. Non-farm payrolls gained 213,00 jobs, the labour participation rate increased to 62.9%, the unemployment rate rose to 4.0% and average hourly earnings (AHE) remained steady at 2.7% y/y.”
“The strong headline gains coupled with notable breadth in employment gains across sectors point to underlying strength. If sustained, this trend would be positive for the outlook on the US labour market and broader economic momentum medium-term.”
“It remains to be seen whether the simultaneous increases in employment and deepening of the labour force are sustained in the coming months.”
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