June 2015 Employment Report

The economy added 233,000 jobs in June and the unemployment rate inched down to 5.30%.  That would be great news except the participation rate dropped to a level last seen in the 70’s and wages decreased were flat.  The average worker made just under $25.00 per hour, same as in May. In 2015 wages have increased 2.00%, which is roughly in line with the average during the course of the recovery. Shortly after the report the bond market rallied and mortgage rates slightly improved.   Mortgage rates generally improve (not always) when important data (like the monthly employment report) comes in worse than expected. Job growth was strong both in the health care sector and the professional and business services industry.

This is a short week for the bond market with the 4th of July holiday this weekend.