The June US jobs report may not be as encouraging as it first appears, according to Moody's Analytics Chief Economist Mark Zandi, who has warned that several underlying indicators point to a weakening labour market despite a fall in the unemployment rate.
In a series of posts on X, Zandi argued that the latest employment figures have been interpreted too positively, saying the decline in unemployment was largely driven by a sharp fall in labour force participation rather than stronger hiring.
His remarks come as economists continue to debate the health of the US economy amid slowing job growth and uncertainty over future employment trends.
Mark Zandi questions strength of June jobs report
Zandi said the headline employment figures masked broader signs of weakness across the labour market.
While payroll employment increased modestly in June, he noted that job gains for previous months had been revised downwards and that much of the hiring was concentrated in the healthcare sector instead of being spread across multiple industries.
In a post on X, Zandi wrote: "Not only did employment as measured by the payroll survey post a small gain in the month, but previous month's gains were revised much lower, and the bulk of the job gains were in healthcare. And employment as measured by the household survey fell sharply again, as it has all year."
