The economy added 372,000 jobs in June. While this could lead to higher-than-expected rises in the labor market and ease concerns about an imminent recession, it also complicates the Federal Reserve’s job of quelling inflation.
The Ministry of Labor reported on Friday that the unemployment rate was 3.6%, the same as last month.
This number is consistent with the average increase over the past few months, including 368,000 in April and 384,000 in May. Employers have been competing for workers in recent months, with initial unemployment claims rising slightly from March’s lows.
The private sector is now regaining pre-pandemic employment, while the public sector remains at 664,000, below February 2020. Except for the public sector No industry was unemployed in JuneSeasonally adjusted base.
However, there is no guarantee that rapid growth will continue indefinitely, as high prices are squeezing consumer spending. The workforce remains constrained by demographic aging, low levels of immigrants, and barriers to work that continue to be on the sidelines of many.
Julian Richards, Morgan Stanley’s Vice President of Global Economic Research, said: But he said it would take some time to run out of American labor.
“There is still a lot of disgusting demand for workers,” said Dr. Richards. “As the economy slows, employment should slow after processing the unprocessed portion of labor demand.”
That backlog is evident in the 11.3 million jobs that employers opened in May, and that number remains close to record highs, with nearly two jobs available to anyone looking for a job. I am doing it. In that equation, a worker fired when a particular sector is in tension could quickly find a new job, at least for some time.
However, many headwinds have set a time limit on the seller’s labor market. Business leaders report that domestic demand remains strong and some supply chain problems have eased, but backlogs are no longer increasing and savings accounts are shrinking. Whenever possible, employers are automating tasks rather than hiring new hires.
Bill Adams, Chief Economist at Comerica Bank, said: “Maybe companies will take some time to fill in the positions they are looking for before they actually get the job listing.”
