In June, the U.S. economy added slightly more jobs than anticipated, the Labor Department reported on Friday. Average hourly earnings also grew by 0.3% for the month and 3.9% year-over-year, both in line with expectations.
Additionally, Nonfarm payrolls increased by 206,000 in June, exceeding the Dow Jones forecast of 200,000.
“It’s a soft landing kind of report,” said Jan Hatzius, chief economist at Goldman Sachs, on CNBC’s “Squawk on the Street.” He suggested this data supports the likelihood of a Federal Reserve rate cut soon, potentially in September.
The labor force participation rate, which measures the proportion of working-age people either employed or actively seeking employment, increased by 0.1 percentage point to 62.6%. The prime-age participation rate for those aged 25 to 54 rose to 83.7%, the highest in over 22 years.
A broader unemployment measure, which includes discouraged workers and those working part-time for economic reasons, remained steady at 7.4%. Household employment, which helps calculate the unemployment rate, increased by 116,000. The household survey showed a decrease of 28,000 full-time workers and an increase of 50,000 part-time workers.
Job creation in June was bolstered by a 70,000 increase in government jobs. The healthcare sector added 49,000 jobs, social assistance contributed 34,000, and construction saw a rise of 27,000 jobs.