Summary
- U.S. job growth slowed sharply in June, with 57,000 jobs added versus expectations for 110,000 and well below May’s revised 129,000 gain.
- The unemployment rate edged down to 4.2%, slightly better than forecasts and May’s 4.3% reading.
- Weaker labor data could cool expectations for aggressive Federal Reserve rate hikes in 2026, contributing to a drop in bitcoin prices after the report.
U.S. jobs growth disappointed last month, with the data likely to set back market expectations of a Federal Reserve rate hike as soon as this summer or early Fall.
The U.S. added 57,000 jobs in June, as reported by the government’s Nonfarm Payrolls Report released Thursday morning. That’s lower than the 110,000 forecasted by economists and significantly below May’s 129,000 gain (revised from an originally reported 172,000).
The unemployment rate came in at 4.2% versus an expected 4.3% and May’s 4.3%. The drop in the UE rate, even as hiring slowed, was due to the Labor Force Participation rate declining to 61.5% from 61.8%.
Up strongly ahead of the report, bitcoin BTC$61,346.41 held above $61,000, higher by 4% over the past 24 hours.
U.S. stocks are liking the data, Nasdaq 100 futures moving to a 0.7% gain from about flat ahead of the report. The 10-year Treasury yield has dipped four basis points to 4.46%
