A contradiction to the recent non-farm jobs (posted below) is the average weekly hours, which I believe many are overlooking or not looking at all.
This might sound insignificant; however, it’s a critical component because it represents both the employee and corporations. The trend is heading back towards the pandemic figures at the beginning of 2020.
Just because more jobs are added doesn’t mean the compensation from those jobs (with less hours) is providing the consumer/household with enough buying power to keep their head above water with the rising costs of goods and services.
Average Weekly Hours
The economy added 372K payrolls in June of 2022, much better than market forecasts of 268K and only slightly below a downwardly revised 384K in May. Figures came in line with the average monthly gain of 383K over the prior 3 months, still pointing to a tight labor market.
Most jobs were probably created in the leisure and hospitality and the manufacturing sector likely created 15K new jobs, despite Tesla’s ongoing layoffs. On the other hand, payrolls are seen declining in construction and the financial sector.
The US unemployment rate was unchanged at 3.6 percent in June of 2022, the same as in the previous three months, remaining the lowest since February 2020 and in line with market expectations. The number of unemployed people decreased by 38 thousand to 5.912 million, while employment levels fell by 315 thousand to 158.111 million. Meanwhile, the labor force participation rate edged down to 62.2 percent in June from 62.3 percent in May.