Labor Market Weakened in June as Nonfarm Payrolls Fell 114,000

The labor market weakened further in June, as nonfarm payrolls fell by 114,000, according to this morning's employment report from the Labor Department. However, the unemployment rate rose to just 4.5% from 4.4%; economists had expected the jobless rate to rise to 4.6%.

Economists polled by Reuters were looking for a drop of 44,000 in payrolls but in the days before the report, some expected the job losses would be much worse, as they were. However, there's fleeting hope that this report will be the worst of it this year, and subsequent releases will show the rate of job loss slowing.

The labor market has softened in the last several months, after the unemployment rate hit a 30-year low of 3.9% late last year. In response to rising costs and falling profits, companies have cut back the rolls and laid off workers. Weakness in the job market is expected for the duration of the year. ...