Despite the predicted recovery of the US labor market, only 223,000 new jobs were created in June. Analysts had expected an increase by 230-280 thousand.
Besides, as the US Department of Labor revised its figures for March and April, it turned out that only less than 200,000 jobs on a monthly basis were created during these two months – 85,000 and 187,000 respectively. In fact, the minimum level for employment recovery set by the US Federal Reserve is 200,000.
As for the US unemployment rate, it only declined by 0.1%, from 5.4% to 5.3%. However, this result still exceeds the expectations of the Fed and market participants. The key factor for the Fed’s decision on hiking its core interest rates remains the current labor market situation, Chair of the Federal Reserve Janet Yellen says. Since 2006, US interest rates have not been raised, and even reached zero during the crisis of 2008. In September 2015, the Federal Reserve will discuss a possible interest rate hike.