June 2023 U.S. Nonfarm Payroll data came in at 209,000, below the expectations of 250,000. In fact, this data is among the first non-farm payroll data to fall short of expectations. In the same period, the unemployment rate stayed at 3.6%.
The June 2023 employment report showed that growth in employment slowed but was still strong. The leisure and hospitality sector provided the largest new job inflow, with 67,000 new jobs. While 53,000 new jobs were created in the professional and business services sector, 36,000 jobs were created in the transport and warehousing sector.
The June 2023 employment report is the last employment report before the Fed’s upcoming interest rate decision, which will be announced on July 26. The consumer price index data, which will be released next week, will also have a significant impact on the Fed’s next move. According to CME Group’s FedWatchTool data, the market is pricing in a 25 basis point rate hike at the next FED meeting, at 92%, following the announcement of this data.
What Is Nonfarm Payroll Data?
The U.S. nonfarm payroll data refers to the monthly employment report released by the U.S. Bureau of Labor Statistics (BLS). This report provides information on the total number of paid employees in the country, excluding farm workers, private household employees, and nonprofit organization employees.
Nonfarm payrolls include data on job gains or losses in various sectors, the unemployment rate, average hourly earnings, and average workweek. It is considered a key indicator of the health and strength of the U.S. labor market and provides insights into the overall economic conditions.
The nonfarm payroll data is closely monitored by economists, investors, and policymakers as it helps gauge the state of the economy, labor market trends, and potential implications for monetary policy decisions. It is often used to assess employment growth, wage inflation, and overall economic performance.