Market Insider

June jobs report less robust than expected

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June's softish jobs report provides no new fuel for a rate hike and in fact may give the Fed pause if there's no reversal this summer.

The 223,000 nonfarm payrolls added in June were slightly less than the 230,000 expected. But the unemployment rate fell to 5.3 percent from 5.5 percent because fewer people participated in the workforce or looked for jobs.

"Liftoff is still possible (for September), but the risks of a delay are rising quite rapidly," said Diane Swonk, chief economist at Mesirow Financial. "One month does not a trend make. We need a reversal now. We just hit another pot hole."