Data revealed in Friday’s jobs report:
- Nonfarm payrolls, June
- Unemployment rate, June
- Average hourly earnings, month-on-month, June
- Average hourly earnings, year-on-year, June
- Trade balance, May
Tightening Labor Market
The tightening of the labor market will be looked at, especially if, as the Federal Reserve portends in light of the data, “indicators such as a very high rate of job openings and an elevated quits rate as additional signs that labor market conditions were strong.” A growing economy could be stifled if a tightening labor market begins to surface in the jobs report data.
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Minutes from the Federal Reserve’s June policy meeting stated that “Several participants, however, suggested that there may be less tightness in the labor market than implied by the unemployment rate alone, because there was further scope for a strong labor market to continue to draw individuals into the workforce.” Despite this, the Federal Reserve is reticent to confirm that a tightening of the labor market is indeed the case given the current economic climate.
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