Jan Hatzius, chief economist at Goldman Sachs, described the report as a “soft landing kind of report” on CNBC’s “Squawk on the Street.” He suggested that the Federal Reserve might cut rates soon, with September being the most likely timeframe.
The rise in the unemployment rate coincided with an increase in the labour force participation rate to 62.6 percent, as noted by CNBC. The prime age rate, which includes individuals aged 25 to 54, reached 83.7 percent, the highest in over 22 years.
The broader unemployment rate, which counts discouraged workers and those holding part-time jobs for economic reasons, held steady at 7.4 percent.
Household employment, used to calculate the unemployment rate, increased by 116,000, while full-time workers decreased by 28,000 and part-time workers increased by 50,000.
June job creation was bolstered by a 70,000 surge in government jobs, with significant contributions from the health care sector (49,000), social assistance (34,000), and construction (27,000).