Upcoming labor market readings are expected to show moderate yet healthy job growth in the U.S. A historically low unemployment rate is also expected.
Economists polled by Bloomberg forecast a rise in nonfarm payrolls of 225,000 in June. While one of the smallest increases since the end of 2020, this remains a positive development as the U.S. job market continues to grow following its pandemic-induced slump.
The report, due to be released on Friday, is expected to show that unemployment decreased to 3.6%, while average hourly earnings grew 4.2% from July 2022.
Despite positive projections, Bloomberg Economics remains skeptical of market optimism.
“Wall Street analysts and economists are increasingly optimistic that the US economy is heading for a soft-landing scenario”, Bloomberg Economics stated. “We disagree. A key source of past resilience in the economy – households’ financial buffer – is fast disappearing. As a result, consumer delinquencies and small business bankruptcies are rising fast.”
Other figures that are expected include weekly unemployment claims, job cuts, private payrolls, and May job openings.