Friday, July 3, 2015

US unemployment rate is down but...

That`s right, the unemployment rate in June fell to 5.3%, the lowest since April 2008 but average hourly earnings recorded no growth at all, bringing the year to year growth at 2.3%. The non-farm employment change added 223 thousand new jobs, missing the estimated 231 thousand. In contrast, 251 thousand new jobs were created in May.

For me, I do feel that the unemployment figure is a little cooked up. It was at 5.5% last month. Is 223 thousand new jobs sufficient to bring down the unemployment figure by 0.2%? All that is needed to tweak the unemployment rate results is how it is defined.

The full employment situation in June can be found here. In addition, Bloomberg has a good write up as well.

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