Traders Eye Friday’s Jobs Report in Light Session (2024)

FAQs

What did the jobs report say? ›

New jobs report shows slow but steady growth

U.S. employers added 206,000 jobs in June, exceeding economists' expectations, but there are signs of a slowdown as unemployment ticked up to 4.1 percent.

The unemployment rate ticked up to 4.3% in July from 4.1% in June, the highest level since October 2021, signaling the labor market is continuing to cool.

Solid but slower job growth

The most notable June job gains occurred in healthcare, construction, and transportation and warehousing. The unemployment rate was below 4% from February of 2022 through April 2024, but has drifted higher, above 4%, since. Source: U.S. Bureau of Labor Statistics as of July 31, 2024.

The latest wage data shows that a steady downward trend remains firmly in place. This also adds to evidence that America's job market is experiencing a broad slowdown, whether you look at monthly job gains, unemployment or wage growth.

fyi counted 28,970 jobs gone during the first 31 days of 2024. Altogether, that's more than 40,000 Americans laid off in January alone. Based on a new Resume Builder survey, four in 10 companies said they are likely to have layoffs in 2024.

At the end of God's invitations to dialogue, Job comes up short in his first response: Then Job answered the Lord and said,“Behold, I am insignificant; what can I reply to You? I lay my hand on my mouth. Once I have spoken, and I will not answer; Even twice, and I will add nothing more.”

There are many reasons for unemployment. These include recessions, depressions, technological improvements, job outsourcing, and voluntarily leaving one job to find another.

The unemployment rate has varied from as low as 1% during World War I to as high as 25% during the Great Depression. More recently, it reached notable peaks of 10.8% in November 1982 and 14.7% in April 2020.

However, the government's monthly nonfarm payrolls report last Friday showed job gains slowed markedly in July and the unemployment rate rose to 4.3%, alarming markets at that point that the labor market may be deteriorating at a pace that would call for strong action from the Fed.

Is there a job shortage in us? ›

US Labor Shortage Rates

In the US, talent scarcity is on the rise. As of 2024, US labor shortage currently sits at 70%, five percentage points below the global average. That means that 7 in 10 employers are unable to find suitable employees for their job vacancies.

Pre-pandemic levels of the labor force participation rate were much higher than today, with a major chunk of the workforce now retired. Whether forced into early retirement by being furloughed or laid off or doing so willingly; Covid-19 has greatly impacted the participation and recovery of older workers.

Is there currently a labor shortage in the US? Job openings outnumbered unemployed people in the US from May 2021 to December 2023, according to Bureau of Labor Statistics (BLS) data. In December 2023, there were 0.7 unemployed people per job opening.

But active job seekers say the labor market feels more difficult than ever. A 2023 survey from staffing agency Insight Global found that recently unemployed full-time workers had applied to an average of 30 jobs, only to receive an average of four callbacks or responses.

The Bureau of Labor Statistics (BLS) reported that the U.S. economy added 175,000 jobs in April 2024, the slowest jobs gain in six months and below market expectations. The unemployment rate ticked up from 3.8% to 3.9%.

The Bureau of Labor Statistics (BLS) reported that the U.S. economy added 272,000 jobs in May 2024, a much better-than-expected report as it easily beat consensus expectations. However, there were modest downward revisions to job growth of 15,000 combined for the prior two months.

US Unemployment Rate is at 4.30%, compared to 4.10% last month and 3.50% last year. This is lower than the long term average of 5.69%.

Slowing job growth may cause the Fed to reduce interest rates, which historically correlates with higher stock prices. On the other hand, job growth and low unemployment may spur the Fed to pump the brakes on economic growth by increasing interest rates, which typically depresses stocks.