It’s Wall Street’s monthly ritual – another first Friday and another job’s report. So, let’s dig in and offer some perspective.
Nonfarm payrolls rose a strong 224,000 in June. The unemployment rate inched up from 3.6% in May to 3.7% in June because more people started looking for jobs than landed jobs (U.S. BLS).
The monthly numbers get plenty of attention, maybe too much attention. Asking whether the U.S. economy is generating new jobs is an important question. But, monthly data can be lumpy, which whipsaws sentiment.