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