- Stanley Fischer, Fed Vice Chairman
American employers continued to add more than 200,000 jobs for a third consecutive month in June, while the US unemployment rate declined more than expected. US non-farm payrolls rose by 223,000 in June, following the downwardly revised 254,000 a month earlier, according to the Labor Department. The jobless rate slid to 5.3%, down from 5.5% the prior month, marking the lowest rate since April 2008. Nevertheless, many analysts continue to criticize the figure for not objectively reflecting the real picture of the labour market. The real unemployment rate was 10.5%, according to an alternative reading known as underemployment level or U6. It stood at 10.8% in May. Meanwhile, the number of Americans participating in the labour force dropped to 62.6% in June from 62.9% in the preceding month, reaching the lowest level since 1977. Average hourly earnings of private-sector workers remained unchanged last month at $24.95. From a year earlier, wages rose 2%, almost in line with wage gains for much of the current recovery. The mixed data comes as the US economy could face a number of headwinds later in the year. The Greek debt crisis could derail growth in the rest of Europe and even impact US financial markets. The combination of easy-money policies by foreign central banks and investors' confidence in the US has caused the value of the Dollar to soar over the past year.
© Dukascopy Bank SA