June 2020 US non-farm payrolls data

  • Prior was +2509K
  • Unemployment rate 11.1% vs 12.5% expected

Details:

  • Two month net revision +90K
  • Participation rate 61.5% vs 61.2% expected
  • Prior participation rate 60.8%
  • Avg hourly earnings -1.2% m/m vs -0.7% exp
  • Prior avg hourly earnings -1.0%
  • Avg hourly earnings +5.0% y/y vs +5.3% exp
  • Prior avg hourly earnings +6.7%
  • Avg weekly hours 34.5 vs 34.5 exp
  • Private payrolls 4767K vs +3000K exp
  • Manufacturing +356K vs +438K exp
  • U6 underemployment 18.0% vs 21.2% prior

The BLS said the unemployment rate would have been 1 percentage point higher if workers would have been classified correctly but even with that, it would have been better than expected. This is a very strong number and much better than anticipated.

The initial market reaction has been muted in FX but equity futures have pushed to the best levels of the day.