Job
creation
slowed
in
June,
despite
continued
tight
labor
market
conditions,
which
economists
say
is
good
news
for
the


Federal
Reserve.

Data
from
the


U.S.
Bureau
of
Labor
Statistics
released
on
Friday
shows
that
total
nonfarm
payroll
rose
by
206,000
jobs
in
June,
compared
to
272,000
jobs

in
May.

Job
gains
in
June
were
most
notable
in
industries
like
government
(70,000),
health
care
(49,000),
social
assistance
(34,000)
and

construction
(27,000),
a
positive
for
the
housing
industry.

When
broken
out,
the
residential
construction
sector
added
3,100
jobs
month
over
month,
while
the
number
of
residential
specialty
trade
contractors
rose
2,400
from
a
month
prior.
Overall,
for
the
past
year,
the
construction
sector
has
added
an
average
of
20,000
jobs
per
month.

The
real
estate
and
rental
and
leasing
services
sector
added
1,100
jobs
from
May
with
real
estate
posting
a
500-job
gain
and
the
rental
and
leasing
sector
gaining
800
jobs.

Despite
the
continuing
job
growth,
unemployment
rose
slightly
from
May
to
4.1%
in
June,
with
6.8
million
people
unemployed.
A
year
ago,
the
unemployment
rate
was
3.6%
with
6
million
people
unemployed.

While
economists
noted
that
the
month’s
job
gains
were
higher
than
anticipated,
they
highlighted
that
most
of
the
jobs
were
in
the
government
sector.

“Similar
to
May,
the
headline
gain
in
nonfarm
payroll
employment
data
in
June
does
not
tell
the
entire
story,”
Mike
Fratantoni,
the

MBA’s
senior
vice
president
and
chief
economist,
said
in
a
statement.
“While
the
headline
gain
showed
an
increase
of
206,000
jobs,
more
than
one-third
of
that
was
a
gain
in
government
employment,
largely
a
function
of
increases
in
state
and
local
jobs.
Although
June’s
increase
was
above
our
expectations,
both
April
and
May
figures
were
revised
down
by
a
combined
111,000
jobs,
marking
the
three-month
average
down
to
a
177,000
increase.”

Fratantoni
also
highlighted
the
rise
in
unemployment
as
an
indicator
that
the
job
market
was
slowing.

Although
a
cooling
economy
is
what
the
Federal
Reserve
wants
to
see,
economist
believe
this
jobs
report
does
not
guarantee
an

interest
rate
cut.

“This
not-too-cold/not-too-hot
Goldilocks
economy
is
what
we
want
to
see
as
the
Federal
Reserve
will
deliberate
on
the
timing
of
interest
rate
cuts
in
the
second
half
of
2024.
In
addition
to
today’s
report,
the
Fed
is
watching
a
range
of
other
economic
indicators,
most
notably

inflation,”
Lisa
Sturtevant,
the
chief
economist
at

Bright
MLS,
said
in
a
statement.
“The
first
June
inflation
reading
will
be
out
next
week.
Lower
inflation
and
a
looser
labor
market
means
it
is
more
likely
for
there
to
be
two
rate
cuts
instead
of
one
in
2024.”

If
the
Fed
does
cut
interest
rates,
Sturtevant
believes
housing
market
activity
will
pick
up
as
many
buyers
have
been
waiting
on
the
sidelines
hoping
for

lower
rates.

Related