Jobs and unemployment both see a rise as more people enter the workforce.
The U.S. economy added 213,000 jobs in June, considerably higher than the median estimate of 195,000, according to Bloomberg.
Here are some of the highlights from the report.
1. More jobs, but also higher unemployment
The unemployment rate rose slightly to 4 percent from 3.9 percent last month.
Bloomberg: “The rise in the unemployment rate was also “healthy” because it reflected an uptick in the labor participation rate (to 62.9 percent from 62.7 percent), raising hopes that the labor force can overcome some of its structural headwinds.”
CNN Money: “New entrants, including blue-collar workers and teenagers, shouldn’t have much trouble finding a job. There are more openings right now than unemployed workers, leading businesses to expand hiring to historically disadvantaged groups.
2. Wages still lagging
Low unemployment is usually expected to lead to increased wages as the labor market tightens and employers are forced to compete more to attract fewer candidates. This trend hasn’t held in recent jobs reports, and despite a small increase last month, wages growth has fallen back into this pattern.
The Washington Post: “Despite the low unemployment and struggles to find workers, companies still appear hesitant to significantly raise pay in many industries. Average hourly earnings are 2.7 percent higher than a year ago, a lackluster pace compared to past eras of healthy job growth when wages were rising at 3.5 percent or more a year.”