U.S. Jobless Rate Falls to 4.2% as Participation Drops to 61.5%
Updated
Updated · Seeking Alpha · Jul 8
U.S. Jobless Rate Falls to 4.2% as Participation Drops to 61.5%
2 articles · Updated · Seeking Alpha · Jul 8
Summary
June unemployment fell to a 12-month low of 4.2%, but Pantheon Macroeconomics said the drop overstates labor-market strength.
The 4.2% rate was driven largely by a sharp fall in labor-force participation, which slid to a post-Covid low of 61.5%.
That participation rate has now dropped a full percentage point from 62.5% in November, suggesting fewer Americans were counted as actively seeking work.
The June data leaves a mixed picture: headline unemployment improved, while the shrinking labor force points to underlying softness in the jobs market.