On the downside, information services lost 4K more jobs, the ninth straight monthly decline, which is bad news since these are some of the highest paying jobs in the economy. Motor vehicle and parts manufacturing lost 1K jobs as sales continue to dwindle.
The 70K difference in job growth in June versus May was largely due to the big increase in local government jobs and the rebound in healthcare services employment.
Average hourly earnings rose 0.2% and were up 2.5% from a year ago, down a bit from the 2.9% pace back in December. With inflation cooling recently, real wage growth has rebounded slightly but remains very weak.
Today’s report will give the hawks more incentive to push for another Fed rate hike soon. Even so, inflation remains well below the Fed’s target, so a rate hike is not necessary.