Cut out shot of unrecognizable young woman standing over her desk, packing a box with her belongings and office supplies after getting fired or quitting.
The report suggests the labor market is slowing as more Americans exit the workforce.
Mike Reid, head of U.S. economics at RBC, told the outlet that the report points to multiple factors behind the decline.
“The unemployment rate fell to 4.2% as both the number of unemployed workers and the size of the labor force pulled back. This may well be a story of retirements, but could also be a story of prior job seekers dropping out of the labor force.”
Dan North, senior economist for North America at Allianz, said the participation rate provides a clearer picture of labor market conditions than the unemployment rate.
“What’s an important development is the participation rate, and this is a big leg down in one month, and over the past year, it’s a pretty big leg down. I think this is a more important number,” she told the outlet.
North said the latest figures also challenge common explanations for the decline.
“Looking at the statistics now, that argument doesn’t hold up so well.”
Some economists cautioned that June’s data could reflect monthly volatility, particularly because of losses in the leisure and hospitality sector. Still, Heather Long, chief economist at Navy Federal Credit Union, said the broader trend warrants attention.
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Source: Black Enterprise
