The government releases the employment report for June tomorrow and Wall Street is eager to see how the job front looks. This could be a pivotal report because there’s been some improvement in job losses for the April and May reports.
Let me add some context: For the five-month period from November to March, job losses averaged over 670,000 per month. That means about 1,000 Americans lost their jobs every hour for five straight months.
Then, suddenly, job losses dropped to 504,000 in April. That’s still an awful number but it was a noticeable improvement and perhaps indicated that the worst was behind us. Before we could say it’s a trend, we needed to see more gains. For the May report, that’s exactly what we got. Job losses dropped to 345,000. Again, that’s an awful number but at least the numbers are moving in the right direction and it’s why tomorrow’s report is so important.
Economists on Wall Street expect to see job losses of 325,000 for June. They also expect the unemployment rate to bump up to 9.6% from the current rate of 9.4%. This morning, ADP released its employment report and it showed job losses of 473,000.