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Takeaways from weaker than expected jobs report · THE DAILY BRIEF

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  Speaker 1: Right up the top that new job support showing that
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  Speaker 1: US employers added fifty seven thousand jobs in the month
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  Speaker 1: of June. Now, while they're saying that's a positive, think
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  Speaker 1: about this. That's far below forecasts from analysts, and it
• 0:12
  Speaker 1: signals that hiring could be losing some momentum. However, National
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  Speaker 1: Economic Council Director Kevin Hassett strikes a more optimistic tone.
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  Speaker 1: Here's what he had to say.
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  Speaker 2: You know, I think that if you smooth through the
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  Speaker 2: ups and downs over the last three or four months,
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  Speaker 2: we're on a really steep upper trajectory. And I think
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  Speaker 2: the main story of the White House has been that
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  Speaker 2: all of these new factories, the ground breakings that the
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  Speaker 2: presidents of talking about the nineteen trillion dollars this flow
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  Speaker 2: get to the economy is going to create a construction
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  Speaker 2: boom followed by an employment boom. And the construction boom
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  Speaker 2: was very visible with the data as well.
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  Speaker 1: All Right, so let's bring in CBS News Business contributor
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  Speaker 1: Javier Davide.
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  Speaker 3: Okay, so what do you make of the numbers? Yeah, look,
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  Speaker 3: I hate to be a wet blanket right before the
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  Speaker 3: independence holiday, but this wasn't really a great number fifty
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  Speaker 3: seven thousand new jobs on an unemployment rate of four
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  Speaker 3: point two percent isn't a catastrophe, but it's not terribly
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  Speaker 3: encouraging either. So in terms of jobs growth through we
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  Speaker 3: kind of treaded water in June. We have this hot
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  Speaker 3: streak from earlier in the year of new positions that
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  Speaker 3: got created, but unfortunately those got downwardly revised by a
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  Speaker 3: total of seventy four thousand. So also about that kind
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  Speaker 3: of world top hospitality boost that we were expecting, well,
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  Speaker 3: unfortunately didn't last. The sector actually lost about sixty one
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  Speaker 3: thousand jobs last month alone, and the seasonal employment effect
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  Speaker 3: is looking a little bit softer than usual. So is
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  Speaker 3: that Kevin Hassett clip you just played shows average monthly
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  Speaker 3: jobs creation is pacing far better than it was last year.
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  Speaker 3: So that's the good news. But it's still really a
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  Speaker 3: tough jobs market for job seekers in any field other
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  Speaker 3: than say healthcare or social assistance, because those are really
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  Speaker 3: the chunk of new jobs, and over half of them
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  Speaker 3: are coming from that sect.
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  Speaker 1: A lot of kids who left college and high school
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  Speaker 1: applying for jobs, and we're starting to see that unemployment
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  Speaker 1: rate tick down slightly. What do you read there?
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  Speaker 3: Yeah, I mean, some of that is the AI effect,
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  Speaker 3: because we always knew that this transformative technology that we're
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  Speaker 3: all talking about all the time was going to eat
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  Speaker 3: into new jobs for new college grads. But looking beneath
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  Speaker 3: the hood, there's even more sort of disturbing developments. There's
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  Speaker 3: a chunk of the labor forces just kind of disappeared,
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  Speaker 3: like they're not looking for jobs. It's a drag on
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  Speaker 3: the overall participation rate the you know, seven hundred thousand
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  Speaker 3: people on the order have exited the market and more
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  Speaker 3: than five hundred thousand are just not employed at all.
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  Speaker 3: So that has dragged on the employment of population and
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  Speaker 3: the labor force partition participation rate numbers, which are at
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  Speaker 3: the lowest they've been in about five years. So that's
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  Speaker 3: not good. You have a combination of people that are
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  Speaker 3: looking for jobs that can't find them, and you've got
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  Speaker 3: these new grads that are coming into the market that
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  Speaker 3: are trying to find something. It's just just creating a
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  Speaker 3: lot of noise and distortion.
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  Speaker 1: Well, we know the FED chair, the new FED chair,
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  Speaker 1: mister Walsh and his peers with the FED look at
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  Speaker 1: a lot of different metrics as to whether to decide
• 2:57
  Speaker 1: whether to lower interest rates. So can this new data
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  Speaker 1: relative to jobs and the economy help them to have
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  Speaker 1: a little more confidence or are you thinking that inflation
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  Speaker 1: is still spiking and they're going to hold steady or
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  Speaker 1: maybe even raise interest rates.
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  Speaker 3: Yeah, I mean, I think that's the golden question to
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  Speaker 3: bottom line of jobs growth is still very spotty, very situational.
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  Speaker 3: Still needs something in the way of support, but it's
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  Speaker 3: not entirely clear whether that's something is going to come
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  Speaker 3: from rate cuts, or whether that's even the palliative. Some
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  Speaker 3: economists believe it is. The new FED chair suggested that
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  Speaker 3: inflation is showing signs of cooling, but even when you
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  Speaker 3: discount some of the temporary factors like the Iran or
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  Speaker 3: energy spike, there's still stickiness and prices. And the Fed
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  Speaker 3: recognizes that there's a softness in the labor market they
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  Speaker 3: really want to address, and they're in plying to address.
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  Speaker 3: But they're also painfully aware the cutting rates is a
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  Speaker 3: risk to fanning the flames of inflation all over again,
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  Speaker 3: and it's why they're going to sort of remain on
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  Speaker 3: hold for the immediate future. They're looking for or reason
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  Speaker 3: to cut, but the data isn't necessarily transmitting clear signs
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  Speaker 3: for them to do that right now.
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  Speaker 1: All right, Javier David, thank you so much for the conversation.
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  Speaker 3: Always great to see you.
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  Speaker 1: You have a good day. Live now to CBS News
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  Speaker 1: correspondent Natalie Brand who has reaction to the numbers from
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  Speaker 1: the White House. So what are they saying and how
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  Speaker 1: are they framing reaction to the job support.
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  Speaker 4: Natalie hi reed, Well, us expected. White House officials are
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  Speaker 4: touting this as a report that shows that the labor
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  Speaker 4: market remains solid and is on an upward trend. And
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  Speaker 4: they also point to a new manufacturing facilities opening up,
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  Speaker 4: also goods like steel, aluminum, and metals, and factories facilities
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  Speaker 4: that will still come online soon around the country. White
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  Speaker 4: House Economic Advisor Kevin Hassett, you heard a clip from
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  Speaker 4: him earlier. He's arguing, you know that all of this
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  Speaker 4: plus construction will create a boom. And here's his message
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  Speaker 4: for people still looking for jobs who may have dropped
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  Speaker 4: out of the workforce search process.
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  Speaker 2: Here's what he had to say, Well, there are millions
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  Speaker 2: and millions of job openings, and so if people are
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  Speaker 2: frustrated that they got fresh rated maybe because of Joe
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  Speaker 2: Biden's economy and left the labor market, they should come
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  Speaker 2: back in because there.
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  Speaker 3: Are jobs everywhere.
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  Speaker 4: So despite this optimism, as you noted read you know,
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  Speaker 4: these numbers were below what was forecast or expected, and
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  Speaker 4: so that does show that there is some uncertainty that
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  Speaker 4: you know, continues to impact the labor market and the
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  Speaker 4: job service process.