June Jobs Report: “Goldilocks Is here”

July 7, 2024

The job market is bending without yet breaking, which boosts the argument for rate cuts. Things are not too hot and not too cold. Goldilocks is here and September is in play.

Global head of market strategy at TradeStation, David Russell, on the latest monthly report on the labor market.

Why It Matters: The U.S. economy continues to create jobs at a steady pace, adding 206,000 jobs in June – better than expectations. The unemployment rate increased slightly to 4.1%, a historically low number, but the slight increase brings the rate to its highest mark since 2021. Overall the labor market has shown signs of slowing slightly – a respite to economists who view an overly hot labor market as a sign of continued inflation.

The nation’s central bank, The Federal Reserve System, aka The Fed, uses economic indicators like the Jobs Report and the inflation reading to determine borrowing rates (aka federal interest rates), now sitting at their highest in decades. A slightly slower job market could, in theory, encourage a rate cut in the future but that remains TBD.

Read More: The Employment Situation – June 2024 (Bureau of Labor Statistics)

Case for September Rate Cut Builds After Slower Jobs Data (Wall Street Journal)

U.S. economy added 206,000 jobs in June, unemployment rate rises to 4.1% (CNBC)

The May Report (SmartHER News)

by Aimee Roberts, based in Virginia