US employment grew less rapidly than expected in June and is also less strong than in May. According to the U.S. Department of Labor’s major monthly jobs report, 209,000 new jobs were added last month in the world’s largest economy. On Thursday, another, albeit less comprehensive, report on the labor market turned out to be very strong.
Economists had expected an average of 230,000 new jobs on Friday. In May, there were still a downward revised 306,000. The unemployment rate in the United States fell to 3.6%, from 3.7% the previous month.
Interest policy
The government’s employment report is important to the interest rate policy of the Federal Reserve, the umbrella of US central banks. The Fed paused last month to raise interest rates in the fight against high inflation, but financial markets still expect interest rates to rise further later this month. There are fears in the stock market that these rate hikes could trigger an economic recession.
A report from payroll processor ADP came out on Thursday that said job growth in the US corporate sector had picked up sharply in June. Job growth in June hit its highest level in more than a year, according to ADP data. This has led to speculation among investors that the Fed will raise interest rates more decisively and that an interest rate cut is not yet in sight. The ADP data looked at corporate jobs only, the government data also includes employment in government organizations.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
