US non-farm payrolls up by 224,000 in June

The US June jobs report smashes expectations after lackluster May non-farm payrolls statistics.

US non-farm payrolls grew by 224,000 in June, according to the US Department of Labour. That number far surpasses the disappointing 75,000 jobs added in May. Though the unemployment rate ticked slightly upward to 3.7%, it's still the lowest rate in almost 50 years. The new non-farm payrolls report shows the highest job gain since January.

US non-farm payrolls:key figures

Professional and business services +51,000
Healthcare +35,000
Manufacturing +17,000
Retail -6000

Where did non-farm payrolls grow in June?

Professional and business services added 51,000 jobs in June. The healthcare industry added 35,000 new payrolls. Even manufacturing jobs grew by 17,000 last month despite the US-China trade impasse affecting the industry. The only sector that had negative news was retail as 6000 jobs were lost in June.

What do financial experts say about the June non-farm payrolls?

Martha Gimbel, director of economic research for the Indeed Hiring Lab, believes that the positive jobs report shows the resilience of the US economy.

‘The jobs growth number this month is comforting after a few months of uncertainty. While job growth may be slowing down from its astonishing rate last year, it’s reassuring that the economy is still creating jobs at a reasonable pace,’ said Gimbel.

While the amount of jobs are growing, wages haven’t kept pace. Hourly wages grew by 0.2%, less than the expected 0.3%. Jason Guggisberg, vice-president of staffing firm Adecco, encourages corporations to raise wages, but some companies are unsure about how long the economic boom will last.

‘That wage conversation has been going on for years now. They've [employers] been dragging their feet, waiting to see what happens. The answer's always, “it's not in the budget,” said Guggisberg.

Will good June non-farm payrolls be bad for Fed rate cuts?

Ironically, the good news about June non-farm payrolls could be bad news for financial experts wanting a US Federal Reserve interest rate cut. While Fed chair, Jerome Powell, vowed to act to help the US economic expansion, the better-than-expected jobs report could mean the Fed won't feel an urgency to reduce rates.

Gregory Faranello, head of Amerivet Securities’ US rates, said that a half-point rate cut is unlikely, but the Fed may still act to reduce interest rates later this month.

‘The [US stock] market is priced for a fairly definitive scenario. A 50 basis-point rate cut is almost certainly off the table for July, but we [investors] will largely stay priced for 25 basis points through the end of July,’ said Faranello.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Be ready to act on the next non-farm payrolls report

Explore the influence the non-farm payrolls report has on American markets ahead of the next release on 4 December 2020.

  • Which markets could be more volatile after the NFP report?

  • Why was the report introduced and what does it tell us?

  • Why is the report important for traders?

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.