Monday, December 5, 2022
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US Economy Adds More Jobs Than Expected in June

According to official statistics, the US economy added 372,000 jobs in June, greatly above expectations for employment growth.

According to economists, the nation should have added between 250,000 and 295,000 new jobs.

According to the US Bureau of Labor Statistics, the unemployment rate remained quite low.

Some experts interpret the positive jobs data as a hint that future increases in US interest rates may be imminent.

Principal Global Investors’ chief global strategist Seema Shah stated: “Today’s job report should allay concerns about an impending recession, but it does little to allay concerns about a significant amount of additional Fed tightening.

The employment situation is still quite precarious, indicating continued significant wage pressures.

For the fourth consecutive month, the unemployment rate was maintained at 3.6 percent in June.

Due to growing food and energy costs, the US is seeing a rise in living expenses similar to other nations. In the year ending in April, inflation reached a 40-year high of 8.6 percent, and the US Federal Reserve has been raising borrowing prices in an effort to slow the rate of price increase.

The Federal Reserve raised its benchmark interest rate by three quarters of a percentage point to a range of 1.5 percent to 1.75 percent last month, marking the largest increase in over 30 years.

The US economy shrank by 1.6 percent annually in the first three months of the year, and Fed head Jay Powell recently told Congress that a recession is “a possibility.”

In contrast to previous recent economic releases, the “strong jobs data” stands out, according to Richard Flynn, managing director of Charles Schwab UK.

The impact of Russia’s invasion of Ukraine, a multi-decade high in inflation, and aggressive monetary policy tightening are just a few of the concerns that have caused the US economy and stock market to suffer in the first half of 2022, he added.

Jobs data, however, lag behind economic indicators, which are frequently high just before a collapse.

Bob Carlson
Bob Carlson
Bob Carlson is a business journalist, with over a decade of experience in the trenches of reporting up-to-date business news for publications all over the world. With a wealth of knowledge at his back, Bob strives to bring the most important insights into the business world for TheOptic daily.
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