The U.S. unemployment rate dipped to 4.1% in June, according to data released Thursday by the Department of Labor in Washington. The number of unemployed individuals decreased to 7.2 million.
The Labor Department reported that U.S. businesses added approximately 147,000 new jobs outside of agriculture during the month. Growth was primarily observed in the healthcare sector and in state government administration. Conversely, employment in the federal sector saw a further decline. The number of long-term unemployed workers edged up slightly to 1.6 million.
U.S. labor market figures are closely watched by investors globally. The interpretation of these statistics significantly influences expectations regarding potential interest rate adjustments. A robust labor market coupled with persistent inflation generally reduces the likelihood of interest rate cuts. Market participants, particularly investors, often welcome such cuts, as they can make savings accounts less appealing compared to stocks and provide businesses and other entities with cheaper access to credit.
