U.S. payrolls shrank for the sixth consecutive month in June, as businesses faced with rising costs and a weak economy shed more jobs.
Non-farm payrolls fell by 62,000, the Labor Department said Thursday. May payrolls were revised down by 13,000 to show a 62,000-job decrease. Originally, May payrolls were seen shrinking by 49,000 jobs.
The unemployment rate held at 5.5% in June.
Average hourly earnings increased 6 cents to $18.01. That was up 3.4% from a year earlier.
Wall Street economists had expected an unemployment rate of 5.4% and a decrease of 55,000 payrolls jobs for June.
"Labor market weakness persisted in June," said Keith Hall, commissioner of the Bureau of Labor Statistics. "Non-farm payroll employment continued to trend down and has fallen by 438,000 in the first half of the year, an average of 73,000 per month."
Companies are being squeezed in an economy weakened by a housing slump and credit crunch. Consumer spending has dropped, costing firms revenue, while prices, notably for energy, have gone up and pressured profit margins.
The Labor Department said hiring last month in goods-producing industries fell by 69,000. Within this group, manufacturing firms shed 33,000 jobs. Construction employment was down by 43,000 jobs.
Service-sector employment climbed by 7,000 jobs. Professional and business services lost 51,000 jobs. Health care employment grew by 15,000 jobs.
Government added 29,000 jobs.
The average work week was unchanged at 33.7 hours in June.
EUR/USD did little on the -62,000 print for nonfarm payrolls, as this was not far away from the -55,000 consensus. However, the pair has slumped some 60 ticks to the day's low of 1.5810 after ECB President Trichet said today's 25 bps rate hike will contribute to achieving price stability objectives, hardly a signal that rates have peaked but the market seems to be taking it that way
Non-farm payrolls fell by 62,000, the Labor Department said Thursday. May payrolls were revised down by 13,000 to show a 62,000-job decrease. Originally, May payrolls were seen shrinking by 49,000 jobs.
The unemployment rate held at 5.5% in June.
Average hourly earnings increased 6 cents to $18.01. That was up 3.4% from a year earlier.
Wall Street economists had expected an unemployment rate of 5.4% and a decrease of 55,000 payrolls jobs for June.
"Labor market weakness persisted in June," said Keith Hall, commissioner of the Bureau of Labor Statistics. "Non-farm payroll employment continued to trend down and has fallen by 438,000 in the first half of the year, an average of 73,000 per month."
Companies are being squeezed in an economy weakened by a housing slump and credit crunch. Consumer spending has dropped, costing firms revenue, while prices, notably for energy, have gone up and pressured profit margins.
The Labor Department said hiring last month in goods-producing industries fell by 69,000. Within this group, manufacturing firms shed 33,000 jobs. Construction employment was down by 43,000 jobs.
Service-sector employment climbed by 7,000 jobs. Professional and business services lost 51,000 jobs. Health care employment grew by 15,000 jobs.
Government added 29,000 jobs.
The average work week was unchanged at 33.7 hours in June.
EUR/USD did little on the -62,000 print for nonfarm payrolls, as this was not far away from the -55,000 consensus. However, the pair has slumped some 60 ticks to the day's low of 1.5810 after ECB President Trichet said today's 25 bps rate hike will contribute to achieving price stability objectives, hardly a signal that rates have peaked but the market seems to be taking it that way
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