U.S economy added 372,000 jobs in June: ‘no sign of a recession’

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S&P 500 is in the green on Friday after the Bureau of Labour Statistics said the U.S. economy added 372,000 jobs in June versus 250,000 expected.

Jason Furman reacts to the jobs report

At 3.60% (in line with estimates), unemployment rate remained unchanged versus the previous month and spoke to the continued strength of the job market. Reacting to the report, Jason Furman – Former Chair of the Council of Economic Advisors said on CNBC’s “Squawk Box”:

This jobs report was excellent. It’s continued, steady jobs growth, there’s no sign of a recession in the labour data. The problem is, all the data that isn’t in this report tells the exact opposite story.

10-year is back above 3.0% this morning but still below 3.1% yield on the 2-year Treasury. The benchmark index is still in the bear market territory.

Average hourly earnings were up 5.1% YoY

Average hourly earnings were up 0.3% for the month and 5.1% versus June of 2021. The Dow Jones estimate, in comparison, was for a slightly lower 5.0% year-over-year increase. Furman added:

The most important is the wage data. 4.2% increase at an annualised rate in the last three months. That’s way down from what the wage growth was last year. That’s much less inflationary than what we’ve been seeing.

The U.S. Fed has signalled another 75 bps increase in interest rates this month. Investors will get more clarity on what to expect next week after the CPI print is out.

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Source: https://invezz.com/news/2022/07/08/u-s-economy-added-372000-jobs-in-june-no-sign-of-a-recession/