All articles tagged with #labor market
The Labor Department reported initial unemployment claims fell to 215,000 for the week ended July 4, suggesting the labor market remains stable even as June payroll growth slowed; continuing claims rose to 1.814 million due to seasonal adjustment issues from the summer holidays. Fed minutes indicated inflation concerns but generally expected near-term labor market stability, with unemployment hovering near current levels.
Markets start a lighter week as investors eye PMIs and ISM services data after a June jobs report that added 57,000 payrolls and saw revisions lower, tempering bets on an imminent Fed rate hike while inflation remains a concern. Earnings highlights include PepsiCo and Delta Air Lines. In the AI space, memory and processor names (MU, INTC, AMD) led gains in the first half of 2026, helping the Philadelphia Semiconductor Index rally roughly 75% year-to-date, underscoring Bank of America’s view that AI’s growth now hinges on physical infrastructure—chips and power—as memory shortages persist.
Goldman Sachs and MIT researchers warn AI could soon affect entry-level hiring as adoption accelerates in finance, management and professional services where grads are concentrated; while many tasks in fields like law, architecture and engineering are highly automatable, the long-run view is more nuanced—AI may augment labor and create new roles, offsetting displacement as younger workers adapt, and students are already shifting majors toward healthcare to ride the AI-enabled shift.
Goldman Sachs economist Joseph Briggs estimates AI could displace about 9% of the US workforce—roughly 15 million workers—though he expects most displaced workers to transition into new roles rather than vanish. He notes ongoing job cuts in AI-adopting sectors like tech, management consulting, and graphic design, but argues tech-driven innovation has historically produced net job growth amid ongoing labor-market churn. MIT’s Neil Thompson cautions adoption may lag due to information access and costs, suggesting many roles will be only partly automated. The broader labor picture appears cooling, with June adding 57,000 jobs, unemployment at 4.2%, and a shrinking labor force.
June payrolls rose by 57,000 and the unemployment rate fell to 4.2% as about 720,000 people left the labor force, pulling the participation rate to 61.5% (the lowest since March 2021) and prime‑age participation to 83.3%. Long‑term unemployment remained elevated at around 1.9 million. The Job Openings and Labor Turnover Survey showed 7.6 million openings but a hiring rate of 3.3% with little turnover. Economists warn the unemployment drop may reflect people exiting the workforce rather than stronger hiring, leaving the labor market uneven and possibly noise-driven, with anomalies like declines in 25–34-year-olds and softer leisure/hospitality hiring.
The June 2026 US payrolls increased by 57,000, far below economists’ expectations of about 113,000, while the unemployment rate fell to 4.2% (its lowest in a year). April and May payrolls were revised downward by a combined 74,000, dampening momentum. Job gains came from professional and business services, social assistance, and healthcare, but leisure and hospitality lost 61,000 positions as seasonal hiring cooled. The labor-force participation rate also slipped to 61.5%, suggesting softer overall labor-market strength.
June payrolls rose by 57,000 with the unemployment rate easing to 4.2% and a surge in job openings, signaling a still-robust labor market even as hiring momentum slows. But consumer confidence remains weak, with wages lagging inflation and inflation-driven concerns cutting into real earnings, complicating the political narrative around Trump’s economic plan and potentially influencing Fed policy.
US June payrolls rose 57,000 overall, but leisure and hospitality jobs fell by 61,000 despite the World Cup; earlier gains for April–May were revised down by about 74,000, keeping rate-hike expectations subdued and casting doubt on a sustained World Cup-driven jobs boom.
U.S. nonfarm payrolls rose by 57,000 in June, well below economists’ 113,000 forecast, while the unemployment rate dipped to 4.2% and the labor-force participation rate held at 61.5%. Gains were led by professional/business services, social assistance, and healthcare, but leisure and hospitality fell by 61,000 after May’s surge; April and May payrolls were revised down by a combined 74,000. The report signals a cooling labor market as the year heads toward mid-year.
The June payroll report is expected to show a fourth straight month of steady hiring (about 115,000 jobs), a 4.3% unemployment rate, and wage growth near 3.5%, signaling a stabilizing labor market but wage gains still lag inflation. Analysts warn of risks from summer distortions and divergent forecasts—some see stronger payrolls while others expect modest gains—yet the overall picture points to resilience without rapid wage-driven inflation.
Economists expect June nonfarm payrolls to rise about 115,000 with the unemployment rate holding at 4.3%, a sign of gentle warming in the labor market as immigration declines and the workforce ages. However, the picture is still mixed: May hiring was weak, average hourly earnings lag inflation, and the quits rate remains depressed, suggesting workers haven’t felt the warmth yet. The Bureau of Labor Statistics’ June payrolls report is released today, following mixed data from private sources like ADP.
US private employers added 98,000 jobs in June per ADP, well below economists’ forecast of about 120,000. Growth was mainly in education and health services, with the financial activities sector adding around 14,000. The official government payroll report due later this week is expected to show roughly 115,000 jobs, a moderation from May but still strong enough to keep unemployment from rising. Layoffs fell this week, and job openings data offered mixed signals, suggesting overall hiring remains soft.
ADP reported June private payrolls rose 98,000, below May’s 122,000 and the 110,000 forecast, with 48,000 of the gains coming from education and health services and almost all of the rest in services; leisure and hospitality added just 2,000. Wage growth stayed at 4.4% for those who stayed and 6.6% for job switchers, with hiring concentrated among small firms (under 50 employees). The reading provides a preview of the upcoming BLS nonfarm payrolls release.
U.S. job openings in May rose to 7.6 million, matching April and beating economists’ 7.3 million forecast; gains were led by wholesale trade and accommodations/food services, while healthcare and finance declined. The quits rate held at 1.9%, hires at 3.3%, and layoffs edged up slightly, with rates hovering around 1%–1.2% since mid-2024, according to the Bureau of Labor Statistics’ JOLTS report.
U.S. job openings rose to about 7.6 million in May, a two-year high that beat economists’ expectations for a decline, signaling the labor market remains poised for expansion even as hiring cooled for the third straight month and uncertainty from the Iran war persists.