Source: Jin10 Data
The US labor market is responding to Powell's comments...
According to data released on Wednesday, in June, US companies increased their pace of hiring more moderately and wage growth slowed, consistent with the gradually cooling labor demand. In addition, the number of initial jobless claims continued to rise last week.
After the data was released, gold broke through the $2,350 mark for the first time since June 21, with an intraday increase of 1%, and silver rose more than 3% intraday.
According to data from ADP Research Institute, private employment increased by 150,000 last month, lower than the expected increase of 165,000. This largely reflects the increase in employment in leisure and hospitality industries.
Nela Richardson, chief economist at ADP, said in a statement, 'Job growth has been steady but not broad. If not for the rebound in recruitment in leisure and hospitality, June would have been a disappointing month.'
ADP's report adds to the signs that the labor market is gradually cooling, with the US unemployment rate rising to 4% in May, the highest level in over two years. In addition, the number of initial jobless claims rose to 238,000 last week, higher than the expected 235,000, indicating that unemployed Americans are taking longer to find work. The number of continuing jobless claims rose to 1.86 million, the highest level since November 2021.
Federal Reserve Chairman Powell said in a panel discussion at a European Central Bank meeting on Tuesday that the labor market has achieved a 'substantial' balance between worker supply and demand.
ADP's data also showed that wage growth for job-switching workers slowed for the third month in June, with year-on-year growth slowing to 7.7%. Wage growth for workers who stayed on the job rose 4.9% year-on-year, the lowest level since mid-2021.
There are sporadic signs that businesses are cutting jobs due to cost-cutting and weak economic conditions. According to Challenger's data, U.S. employers announced 48,786 job cuts in June, the most for any June since 2009, except during the coronavirus pandemic.
On Friday, the U.S. will also release the June non-farm payroll report, and Fed policy makers will further understand the state of the labor market. Economists expect non-farm payrolls, including private and public sectors, to increase by 190,000, down from last month.
Editor / jayden