In June 2023, the US added 147,000 jobs primarily due to hiring in public schools. However, the data also points to a weak private sector.
Growth in Government Jobs
In June, there was significant hiring in public schools, which contributed to the overall increase in new jobs to 147,000. The unemployment rate fell to 4.1%, with fewer people looking for work.
Weak Private Sector Results
However, when excluding public sector hiring, the private sector added only 74,000 jobs, marking the lowest figure since October. The majority of the growth came from healthcare, which added 59,000 positions, but this was also the weakest gain in four months.
Markets React to Employment Numbers
Financial markets reacted quickly to the employment data. The increase in jobs and decline in unemployment raised Treasury yields and the dollar's value, signaling to investors that the Federal Reserve may delay necessary changes in interest rates.
The June 2023 jobs report presents mixed results, highlighting strong growth in the government sector and weakness in the private one. Economic experts predict cautious actions from the Fed given the current labor market conditions.
