Svmuu News: U.S. June nonfarm payroll data showed that, despite a decline in the unemployment rate, hiring slowed significantly in June, dampening the initial momentum of job growth this year.According to data released Thursday by the U.S. Bureau of Labor Statistics, nonfarm payrolls increased by 57,000 in June (market expectations were 110,000), following a downward revision of 74,000 in the figures for the previous two months.
The decline in the unemployment rate was due to a sharp drop in the labor force participation rate—when the labor force participation rate falls, it means that a portion of the population has exited the labor market (for example, by giving up job searches, retiring early, or returning to school). These individuals are no longer counted as “unemployed” nor do they belong to the “labor force,” thereby leading to a lower unemployment rate.Following the release of the data, spot gold prices rose briefly, and the market scaled back bets on a rate hike by the Federal Reserve. The market has already fully priced in expectations of a rate hike by the Federal Reserve in December; previous expectations had been for a hike in October. (Jin Shi)