US: Unemployment rate to edge back down to 3.5% for June – Societe Generale
Analysts at Societe Generale offer a sneak peek at what to expect from Friday’s US labor market report due for release at 1230 GMT.
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Key quotes
“Employment gains are slowing, and we view this as inevitable as more of the unemployed have found jobs and the unemployment rate has dropped well below 4%.”
“Strong employment, however, is how we interpret an increase of nearly 300K jobs in a month.”
“Trucking, delivery, food services and healthcare remain areas of recovery and growth for job markets.”
“We expect the unemployment rate to edge back down to 3.5% for June, possibly very soon.”
“A rising labor force participation rate (more people entering the labor force) is one pro-growth factor that can steady the unemployment rate, preventing a decline, even when the economy is strong. Later, as businesses reduce their demand for labor, smaller job gains are why the unemployment rate stabilizes or begins to rise.”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
