U.S. June Payrolls Underwhelm; Markets Push Back Fed Rate-Hike Timing

Odaily Planet Daily reports: U.S. labor-market data for June pointed to a clear slowdown in hiring despite a lower unemployment rate. The U.S. Bureau of Labor Statistics said Thursday that nonfarm payrolls rose by 57,000 in June, well below the market consensus of 110,000, after the prior two months' gains were revised down by a combined 74,000. The unemployment rate fell largely because labor force participation dropped sharply. A decline in participation suggests more people exited the labor market—such as stopping job searches, retiring early, or returning to school—which reduces the number counted as unemployed and can mechanically pull the unemployment rate lower. After the release, spot gold briefly advanced and investors scaled back bets on a near-term Federal Reserve rate hike. Markets now fully price in a hike in December, shifting from earlier expectations for October. (Jin10)