Scott Marks 7 a.m., Aug. 24
Jobs leap 195,000; jobless rate stays at 7.6%
Gains in April and May revised upward
The U.S. economy added a better-than-expected 195,000 non-farm jobs in June, and employment gains in May and April were revised upward by a combined 70,000. The unemployment rate stayed at 7.6%. The size of the labor force rose by 177,000. Average hourly wages rose 0.4% to $24.01, according to MarketWatch. However, the U6 unemployment rate rose to 14.3% from 13.8% in the prior month. This rate includes people who are only working part-time but want to work full-time, or have become so discouraged they have dropped out of the labor force.
Prior to the report, analysts had expected the stock market to react negatively to good news, because it might imply that the Federal Reserve would hasten its attempt to curtail massive money printing -- the factor that has been holding the market up. However, prior to the market's opening, stock futures are very strong, despite the good news. European Central Bank President Mario Draghi said this week that Europe will continue its easy money policy, setting off big rallies around the world. Today's U.S. market may not be too meaningful because trading is expected to be thin in the post-July 4th session.
More like this:
- U.S. gains 175,000 jobs in May — June 7, 2013
- Nation creates 165,000 April jobs, topping estimates — May 3, 2013
- U.S. Adds Few Jobs in May, Unemployment Rate Rises — June 1, 2012
- U.S. Adds 200,000 Jobs in December — Jan. 6, 2012
- Jobs Report Better Than Expected. Market Relieved — Aug. 5, 2011