The US labor market is losing steam. ADP’s latest private-sector employment report shows just 98,000 jobs added in June, falling short of the 110,000 to 120,000 range economists had penciled in and dropping from May’s 122,000 figure.
The unemployment rate, meanwhile, is expected to hold at 4.3% for the fourth consecutive month when the Bureau of Labor Statistics releases its official nonfarm payroll numbers.
The numbers tell a clear story
Last month’s BLS report caught markets off guard with a surprisingly strong gain of 172,000 nonfarm payrolls. That number sparked fresh speculation about imminent Federal Reserve rate hikes and applied pressure across risk assets. Bitcoin hovered around $62,000 during that period of heightened volatility.
The leisure and hospitality sectors, which have been reliable job engines throughout the post-pandemic recovery, are showing mixed signals.
