US labour market: Surprise, surprise - ANZ

Research Team at ANZ, suggests that the US labour market bulls were on the run with non-farm payrolls surprisingly strong and making the May result look like a blip.

Key Quotes

“The US added 287k jobs in June, well above market expectations of 180k. The payroll diffusion index jumped to 62.4 – highest in a year – meaning hiring was broad-based among industries. Wage growth continued to increase to 2.6% y/y, while a variety of other indicators continue to suggest that it could accelerate further over coming months. Unemployment ticked up to 4.9% due to a higher participation rate. This alongside endurance in other labour market indicators suggests interest rate rises aren’t off the table by year end.”