By Joseph Plocek

WASHINGTON (MNI) – The U.S. June employment report was weak and the bright spot of a 0.2 point dip in the unemployment rate is likely to be ignored.

The June employment report had few surprises, and shows slow growth. Payrolls printed -125,000 and included -225,000 census workers and +83,000 private jobs. May-April jobs were revised +25,000 in total.

The unemployment rate fell 0.2 point to 9.5% as the labor force contracted by a huge 652,000 workers on seasonal adjustment. The unadjusted labor force advanced 901,000, and the only age group whose participation increased was age 55+.

Hours and wages (all Average Hourly Earnings fell 2 cents for +1.7% over the year) were modest, suggesting slow gains ahead in income and production.

June payrolls were mixed: manufacturing +9,000, construction -22,000, retail -6,600, transportation +14,600, financial -15,000, leisure +37,000, temp help +20,500, health +16,800.

Overall, this was not a robust report whose surprise drop in the unemployment rate reflects more discouraged workers and caution entering the workforce.

Details: Payrolls/Prior AHE,yoy Agg Hrs Civ Unempl Rt/Unrnd Jun -125k —- +1.7% 99.1 9.5% (9.5115%) May +433k +431k —– 99.0r 9.7% (9.6980%) Apr +313k +290k —– 99.0r 9.9% (9.8633%)

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