We got more labour market data to close out last week, which came in a bit weaker than expectations.

Unemployment at 6.7% moved higher for the first time since November…

… driven by a 33K drop in employment, with 62K full-time jobs lost and a partial offset from 29K part-time additions.

Average unemployment duration inched higher to 22 weeks and should remain elevated until slack returns to the job market, which could take a while.

We’re watching the participation rate closely, as prolonged unemployment could result in would-be job seekers throwing in the towel, which has much more serious implications for the economy.