June US Non-Farm Payroll Results
American employers added jobs at the slowest pace in nine months in June and the unemployment rate unexpectedly climbed to 9.2 percent, sending global stocks tumbling on concern the world’s biggest economy is faltering.
Employers increased payrolls by 18,000 workers, less than the most pessimistic forecast in a Bloomberg News survey of economists, which called for growth of 105,000. The increase followed a 25,000 gain that was less than half the initial estimate. Hiring by companies was the weakest since May 2010.
“Poor job growth essentially stops any growth in consumer spending,” said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia. “This is saying that economic conditions are stagnant, with no bright spots.”
Treasuries climbed as the report called into question Federal Reserve forecasts for an economic rebound in the second half of the year and raised the odds of additional stimulus. The increase in unemployment also poses a fresh challenge for President Barack Obama as he seeks to keep the economy growing while also negotiating budget cuts with congressional leaders. […read more]