The U.S. Bureau of Labor Statistics (BLS) announced that the number of non-farm payrolls in the U.S. increased by 57,000 in June. This was below market expectations of a 114,000 increase. The unemployment rate was 4.2%, also below market expectations of 4.3%. The non-farm payrolls index, released by the U.S. Department of Labor, is an official indicator that includes employment changes in both the private and government sectors. The non-farm payrolls index and the unemployment rate are data referenced by the U.S. Federal Reserve when making interest rate decisions. If employment indicators are good, such as a high number of employed individuals and a low unemployment rate, the Fed may consider raising or freezing interest rates to prevent overheating. If employment indicators are poor, such as a low number of employed individuals and a high unemployment rate, the Fed may consider lowering interest rates to stimulate the economy.
