CHART OF THE WEEK
May’s US job figures published at the beginning of June had triggered fresh concerns over the economy, chiefly because of the disappointing job-creation figures that came in at just 25,000. Indeed, relatively stable job-creation figures have formed the basis of the ongoing expansion, hovering around 200,000 per month since the end of 2012. However, after the disappointment in May, June saw 265,000 jobs created by the private sector, which is the highest reading since last December.
Our Analysis
This report confirms that the US economy is still creating a significant number of jobs and that growth remains solid. The rise in the unemployment rate can be explained by an increase in the labour force participation rate and follows two months of decline. The likelihood now is that the downtrend will resume and wages will continue gaining pace steadily.
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