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Employment Data Poor Despite Drop in Unemployment Rate

The unemployment rate fell to 9.5% from 9.7%, but this likely reflects people dropping out of the labor market.  The work week fell 0.1%, which is the equivalent of about 300k job loss.  The private sector 83k jobs and the May data were revised to show only 33k from 41k.  Hourly earnings fell 0.1%.  Bottom line then is few man-hours of work, fewer jobs and less income.

The data is not strong enough to ease anxiety about the US economy and the losing momentum.  The dollar will likely stay under pressure.  The Canadian dollar and Mexican peso are also vulnerable to poor US data.

About Marc Chandler

Marc Chandler joined Brown Brothers Harriman in October 2005 as the global head of currency strategy. Previously he was the chief currency strategist for HSBC Bank USA and Mellon Bank. In addition to frequently providing insight into the developments of the day to newspapers and news wires, Chandler's essays have been published in the Financial Times, Barron's, Euromoney, Corporate Finance, and Foreign Affairs. Marc appears often on business television and is a regular guest on CNBC.

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