JUNE JOBS REPORT MISSES EXPECTATIONS, UNEMPLOYMENT 8.2%
Eric Platt|Jul. 6, 2012, 8:30 AM|26,226|58Sandra Mu/Getty Images
UPDATE:
U.S. payrolls expanded by just 80,000 net jobs in June keeping the unemployment rate flat at 8.2 percent, new data from the Bureau of Labor Statistics shows.
The private sector only expanded by some 84,000 positions.
Economists polled by Bloomberg had forecast a gain of 100,000 positions during the month, with private payrolls advancing 106,000.
The disappointing report, which follows several months of weak economic gains, has sent U.S. markets sharply lower.
Millan Mulraine, an economist with TD Securities, attributed the gains to the manufacturing industry, which improved by 11,000 jobs this June. The service sector added 71,000 positions, down from 81,000 a month earlier.
However, Mulraine said the new data continues to emphasize the stagnating labor market recovery.
"The slow pace of jobs growth underscores the weakening economic growth momentum and reinforces the perception that the economy has remain mired in another soft patch," Millan says. "With the labor market recovery appearing to be stalled, the case for further policy accommodation will likely be strengthened, particularly given the benign inflationary background."
The report comes in sharp contrast to private payrolls data out of ADP just a day earlier that showed the economy expanded by 179,000 in June. That figure caused many analysts on Wall Street to raise their expectations going into this morning's announcement.
Adding further pressure to President Obama heading into the election, Hispanic and Latino unemployment remained essentially unchanged at 11.0 percent.
The unemployment rate for white men and women was unchanged at 7.4 percent, while 184,000 more black American's went without a job in June, for an unemployment rate of 14.4 percent.
May and April data were also revised during the month. In April, the BLS now estimates the economy added 68,000 jobs from an earlier report of 77,000. At the same time, employment grew by 77,000 in May, up from last month's report of 69,000.
Below, key output from the Bureau of Labor Statistics.
Nonfarm Payroll Change: +80K
Private Payroll Change: +84K
Manufacturing Change: +11K
Unemployment Rate: 8.2 percent
Average Hourly Earnings (MoM): +0.3 percent
Average Weekly Hours Worked: 34.5 hours
Underemployment Rate (U6): 14.9 percent
SEE ALSO: Legendary Economist Jim O'Neill Wants Everyone At Goldman Sachs To See These 7 Charts >
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ORIGINAL (8:00 a.m.):
At 8:30 a.m., the Bureau of Labor Statistics will publish its June employment situation report which includes the latest unemployment rate and the number of nonfarm payrolls added by U.S. companies.
Here's what the Street is looking for:
Nonfarm Payroll Change: +100K
Private Payroll Change: +106K
Manufacturing Change: +7K
Unemployment Rate: 8.2 percent
Average Hourly Earnings (MoM): +0.2 percent
Average Weekly Hours Worked: 34.4 hours
Consensus for the the report has been revised upwards over the past 24 hours, after the month's ADP Employment Report showed 176,000 jobs had been created during the month, sharply above estimates.
We'll be updating live at 8:30 a.m.
SEE ALSO: Here Are The Jobs Report Predictions From Wall Street's 24 Best Economists >
Read more:
http://www.businessinsider.com/june-nonfarm-payrolls-report-2012-7#ixzz1zqj2s05H
