US non-farm payrolls fell -62,000 in June, slightly worse than expected but not as bad as I had expected. Given recent data I thought we may see a triple digit decline. However that said, the report still wasn't positive and I believe it will only be a matter of a time before we see triple digit declines. The details were as follows:
Retail trade -8,000
Professional and business services -51,000
Service providing +7,000
Leisure and hospitality +24,000
As usual, the controversial Birth / Death adjustment warrants a shake of the head. Apparently 29,000 new construction jobs were added in June along with 86,000 in the hospitality sector.
Now let's look at why this was a less than impressive report. Downward revisions to April and May totalled -52,000. The 0.5% jump in the unemployment rate seen last month that was assumed to be a statistical blip because of teenagers entering the workforce stayed at 5.5%. That was despite 300k teenagers leaving the workforce in June.
Initial Jobless claims jumped to a seasonally adjusted 404k in the latest week and as can be seen below, the 4 week moving average, excluding Hurricane Katrina hit their highest levels since September 2003.
All in all, there is very little to be encouraged by in the latest data on US employment. Next month should interesting as it includes a semi annual revision that will proabably show the BLS has been under reporting job losses so far this year.