US: Labour market remains solid – UOB

Senior Economist at UOB Group Alvin Liew assesses the release of US Nonfarm Payrolls for the month of June.

Key Takeaways

“The US economy beat expectations, adding 372,000 jobs in Jun while the unemployment rate stayed at 3.6%, unchanged since Mar 2022. Wage growth continued but the pace slowed for the third straight month to 0.3% m/m, 5.1% y/y.”

“The US employment gains were broad-based while wage growth was good but manageable in 2022 to date, both will anchor the Fed’s confidence in the labor market and keep them on the hiking path. The question of 50 or 75bps will depend on Jun CPI this Wed (13 Jul).”