US growth

Strategist: Strength blown away – Fed expected to wait

According to Knut Magnussen at DNB Carnegie, Thursday's US jobs figure was not only clearly weaker than the strong figures of recent months. It was also clearly lower than the market expected.

– The underlying strength that the labor market has shown now looks significantly weaker, he tells E24.

The announcement probably means that the Fed will wait with interest rate hikes for now, he believes.

The dollar weakened on the announcement and US long-term interest rates fell. At the same time, Wall Street takes a leap of joy and rises on a broad front.

Christopher Hodge at Natixis takes the figure calmly, writes Bloomberg.

After three months of strong figures, June came down to more "normal levels", he believes.

– The labor market is still strong and, most importantly for the Fed, not overheated, he says. 

Significantly fewer new jobs than expected in the US

The number of new jobs in the US increased by 57,000 in June. This is clearly fewer than the 110,000 that analysts expected, according to Trading Economics estimates.

The lower job growth is mainly explained by the largest loss in the hotel and restaurant industry since 2020, according to the US Department of Labor.

Unemployment remained at 4.2 percent from the previous month. Expected 4.3 percent.

Employment in May was revised down to 129,000 from a previous 172,000 new jobs. The April outcome was adjusted down to 148,000 from 179,000.