The Dow Jones Industrial Average pierced the 17,000 threshold for the first time this morning after another robust national monthly jobs report by the U.S. Department of Labor.
The U.S. economy added 288,000 jobs in June, according to the latest data, prompting the nation’s unemployment rate to dip to 6.1 percent, its lowest rate since September of 2008.
The economy added more than 200,000 jobs for the fifth month in a row. That streak is the longest since the late 1990s and provides convincing evidence that the recovery has rebounded after an unusually harsh winter.
Jim Russell, senior equity strategist for Cincinnati-based U.S. Bank Wealth Management, told BizTimes, “Today’s jobs report confirms that the U.S. economy ended the second quarter at a more rapid pace than it began the second quarter. The 288,000 payroll number for June and the fall in the unemployment rate to 6.1 percent are very welcome news. The details behind the numbers are also impressive. The last two months on non-farm payroll were revised higher by 29,000 and the participation rate held steady at 62.8 percent. A fall in this number might have suggested higher inflation in the period ahead but the news of a participation rate indicates early evidence that people will perhaps return to the work force in the months ahead. Another important detail is that wages year-over-year were up a very modest 2 percent. Thus, better employment trends, better growth and low inflation are key signs – a very nice report in a number of ways.”
“We’re achieving escape velocity,” said Joseph LaVorgna, chief U.S. economist at Deutsche Bank, told The Washington Post. “It’s all there for some real strength.”
Wisconsin’s seasonally adjusted unemployment rate for May was 5.7 percent, down from 5.8 percent in April.
June was the 52nd consecutive month in which the U.S. economy has added private-sector jobs – the longest streak on record.
The jobs data added new fuel to the ongoing rally of the U.S. stock market, with the Dow and the S&P 500 reaching unprecedented new heights.
Local stocks leading the way this morning included Rockwell Automation Inc. (up 99 cents to $1.26.24), Strattec Security Corp. (up 94 cents to $64.68) and Kohl’s Corp. (up 64 cents to $52.99).
Readers can learn more about the outlook for the second half of the year by reading the Mid-Year Economic Forecast in the July 7 edition of BizTimes Milwaukee magazine.
