The jobs report beats expectations and Microsoft announces layoffs
The U.S. government’s nonfarm payroll report for June showed an increase of 147,000 jobs, surpassing economists’ expectations of 110,000. The unemployment rate fell from 4.3% to 4.1%, though this was attributed to a decrease in the labor force participation rate, which dropped to 62.3%, its lowest since 2022. Following the report’s release, traders raised their bets on the Federal Reserve holding interest rates steady, with the odds for a rate cut in September also declining significantly.
In a separate announcement, Microsoft disclosed layoffs affecting around 9,000 employees, representing about 4% of its workforce. These cuts affect several divisions, including Gaming, and are part of the company’s strategy to streamline operations in anticipation of an AI-driven future. Microsoft has conducted multiple rounds of layoffs this year, focusing on reducing management layers and increasing automation.
