Bitcoin Bounces Back as US Unemployment Rate Drops to 3.6% in June
Summary: The BLS's employment report shows the US gained 209,000 jobs in June, below the consensus estimate of 230,000 and down from May's revised total of 306,000. In June, the unemployment rate fell to 3.6% from 3.7% in May and from the predicted 3.7%. Bitcoin price rises back above $30k mark. All eyes are now on the Federal Reserve's interest rate decision meeting is expected in July.
According to the BLS’s most recent employment report, the United States gained 209,000 jobs in June, which was below the consensus estimate of 230,000 and down from May’s revised total of 306,000. The initial figure for May’s employment growth was 339,000.
In June, the unemployment rate fell to 3.6% from 3.7% in May and from the predicted 3.7%. After the data was out, the price of Bitcoin (BTC) increased slightly, reaching $30,250.
Fell Short in Record 14 Straight Months
The announcement comes just 24 hours after the ADP’s employment report for June and Bitcoin plummeting almost $1,000, or more than 3%. The ADP reported 497,000 jobs gained vs 220,000 projected. The employment data released this morning fell short of forecasts for the first time in a record 14 straight months.
According to a further look into the statistics, the labor force participation rate has been stable at 62.6% for four consecutive months. Compared to what was predicted, average hourly wages increased by 0.4% in June. The annual increase in average hourly wages was 4.4%, unchanged from May but higher than the 4.2% economists had predicted.
All Eyes on Fed Interest Rate Hike
Even though there is still a lot of economic data to come in July, this is the final national employment report before the Federal Reserve’s interest rate decision meeting at the end of the month. Markets had been pricing in a near-certainty of the central bank beginning rate rises at that meeting prior to the release of these recent statistics.
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The Consumer Price Index (CPI) inflation rate has dropped from its peak of 9.1% in 2022 to its current level of 4.0%, although it is still much higher than the Federal Reserve’s 2% objective. In addition, the core CPI, which excludes the effects of changes in food and energy prices, has been more recalcitrant, falling to 5.3% from 6.6% last year.