The Day at a Glance | July 2 2021

The Top

*Employment data in the US exceeded estimates: 850 thousand jobs were created in June (vs 700 thousand e.).

*FED will likely have to increase rates by the end of 2022: IMF.

*United Arab Emirates prevents OPEC+ agreement from increasing crude oil production; negotiations were extended.

*Four out of ten companies in the US increased salaries in June in order to attract employees: NFIB.

*Inflation for producers in Europe accelerated to 9.6% annually during May.

*130 countries (90% of global GDP) back the proposal of a 15% minimum corporate tax rate, according to the OECD.

Economic environment

Job creation in the United States exceeded estimates during June. According to the Bureau of Labor Statistics, the United States economy created 850 thousand jobs during June – figure above the expected 700 thousand – and broke its two month long streak of disappointing figures. With this, the unemployment rate fell to 5.9% and the labor market`s participation rate set at 61.6%. The sectors with the largest increases in jobs continue to be the ones that were most affected by the pandemic: Leisure and accommodation (343 thousand), food and beverage services (194 thousand) and art, recreation and entertainment (74 thousand). Average wages increased at an annual rate of 3.6% during the month, in line with estimates that forecasted a gradual acceleration. The data suggests that the recovery in the job market continues, and presents good news as it shows acceleration in the rate of job creation. Towards September, the recovery is expected to become much faster once unemployment aid programs come to an end. It’s quite unlikely that the data will speed up monetary normalization in the FED, however, this represents an important step towards it`s full employment target.