US: Unemployment is increasingly frictional – NBC


Stéfane Marion, analyst at National Bank of Canada, suggests that the US June employment report depicted a resilient economy that continues to generate good job creation.

Key Quotes

“The jobless rate may have increased a bit during the month, but we are not concerned about that given that unemployment is increasingly frictional, i.e., people in the process of moving from one job to another.”

“Case in point, the share of unemployed people that left their job voluntarily surged to 14.7% in June, a two-decade high.”

“Such a development does not argue for an aggressive path of interest rate cuts by the Federal Reserve.”

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