While last month's jobs report pleasantly defied expectations from economists, this month’s numbers from the Labor Department came in slightly lower than expected — indicating a job market that, while healthy, may be cooling off. According to new figures released this morning, the U.S. economy added 209,000 jobs in June — nearly 100,000 fewer than May's surprisingly high figures. Economists expected a gain of roughly 225,000 jobs. But while this month’s job gains fell short of predictions, a slightly lower unemployment rate and steady wages suggest a market that is still going strong. More from WaPo A look at the numbers:
- The nation’s total unemployment rate fell from 3.7% in May to 3.6% in June.
- The unemployment rate for Black Americans rose from 5.6% in May to 6% in June, and increased from 4% to 4.3% for Hispanics.
- Jobs in healthcare, government and construction sectors led the payroll increases, while hiring in retail and transportation dropped.
- Although June marks the 30th consecutive month of job gains in the U.S. economy, it represents the smallest increase since the end of 2020.
The White House’s perspective: President JOE BIDEN reacted to the lower-than-expected numbers in a statement this morning, calling the economy a sign of “Bidenomics in action.” “We are seeing stable and steady growth,” he said. “That’s Bidenomics — growing the economy by creating jobs, lowering costs for hardworking families and making smart investments in America.” The Fed’s perspective: While the new numbers suggest the Federal Reserve’s efforts to fight inflation may be working, NYT’s Jeanna Smialek points out that the report probably won’t impact the agency’s plans to hike up interest rates going forward: “[S]everal policymakers have been clear that even as the pace moderates, they still expect to raise interest rates further.” As WSJ’s Nick Timiraos sums up: “The figures do little to resolve a debate likely to occur at the July 25-26 meeting over whether and when Fed officials should raise rates again to slow the economy, including at their subsequent gathering in September.” Meanwhile: Federal regulators are hoping to bring retired bank examiners and officials back into the fold — a recruitment effort that “shows banking regulators anticipate more activity in the sector,” WSJ’s Ben Foldy and Andrew Ackerman scoop. The generation gap: “The MTV generation’s unemployment problem,” by Sam Sutton and Victoria Guida: “Workers born between 1964 and 1980 — those currently aged 44 to 59 — represent ‘effectively all of the increase’ in America’s unemployed population over the last half year, according to research by Glassdoor’s Chief Economist AARON TERRAZAS.” YELLEN IN CHINA — Treasury Secretary JANET YELLEN met with Chinese Premier LI QIANG today as a part of her four day trip to Beijing NBC’s Evelyn Cheng reports. In prepared remarks, Yellen defended the U.S.’s national security actions, such as recent export control measures on China. “The United States will, in certain circumstances, need to pursue targeted actions to protect its national security,” Yellen said. “And we may disagree in these instances.” Yellen also emphasized that America and its Western allies would push back against China's "unfair economic practices,” Reuters' Andrea Shalal and Joe Cash report. Related reads: “U.S. Raises Pressure on China to Combat Global Fentanyl Crisis,” by NYT’s David Pierson, Edward Wong and Olivia Wang … “The Contentious U.S.-China Relationship, by the Numbers,” by NYT’s Ana Swanson A MALIBU DREAM HOUSE DIVIDED — “GOP declares war on ... Barbie,” by Daniella Diaz: “In a Barbie world, who controls the South China Sea? That’s the question a handful of Republican lawmakers — not to mention much of Southeast Asia — is asking thanks to a background detail in the upcoming ‘Barbie’ movie due out later this month. “The detail in question is a dashed line drawn on a map off the coast of Asia that critics have identified as the nine-dash line, a contested maritime boundary that Beijing draws more than a thousand miles off its own coast to claim the vast majority of the South China Sea as its territory. GOP lawmakers accuse filmmakers of pandering to Chinese censors. But Warner Bros. Film Group, which produced the movie, said Thursday the map is not intended to “'make any type of statement.'” Happy Friday afternoon. Thanks for reading Playbook PM. Drop me a line: birvine@politico.com
| 
