The US labour market flourished in June

The US labour market flourished in June

The US labour market had boomed in June as it created more jobs than expected. The Bureau of Labour Statistics have released their latest report which showed that June was a good month for the labour market. The economists had forecasted that 160,000 jobs would be created but the actual number of jobs eclipsed that figure.

About 64,000 more jobs were created than the estimated figure. 224,000 jobs were created in June. There was poor jobs data in May and that data created concerns that the economy was headed towards recession but the latest figures have cleared away the concerns. The main contributor to the raised employment ration was the professional and business services sector. That sector had generated 51,000 jobs.

Healthcare, transportation and warehousing had also created a large number of jobs. The job creation may have increased in June but it had low effect on the wage growth. The wage growth remained modest at 0.2% which kept the annual rate at 3.1% Economists are keeping a close eye on the jobs data as they are analyzing how this data will affect the interest rate decisions at the US Federal Reserve.

Majority of the bets placed by analysts depict that the US Federal Reserve might lower the interest rates following its next meeting which starts on 30 July. The Feds had indicated last month that the interest rates could be lowered due to subdued inflation and the effects coming from the trade war between US and China.

Luke Bartholomew, investment strategist at Aberdeen Standard Investments said that, “These are good numbers, but a rate cut in July is still all but inevitable.” He also added, “Employment growth remains a bright spot amid a fairly mixed bag of US data and yet markets have come to expect a cut now so will fall out of bed if they don’t get one.” Andrew Hunter, senior US economist, at Capital Economics also supported that Fed will lower the rates but says that they will wait until September.

Staff writer for the Chicago Morning Star

Related Posts
Rockforward 20/20 2019 Results Report Released
The Rockforward Area Economic Development Council (RAEDC) has released the 2019 Results Report for the
JLL report declares Chicago 3rd most-expensive construction market in US
The Construction Outlook 2020 report released by JLL revealed that Chicago was the third-most-expensive construction
Illinois takes in $39.2 million in adult-use cannabis sales in January
The Illinois Department of Financial and Professional Regulation made an announcement related to the adult-use
Allergic reactions link with Christmas tree reported
The specialist in the field of allergy said that Christmas trees could carry mold. A
Chicago patents consider gun violence, cyberbullying, and poverty as top 3 social concerns for youth
Ann & Robert H. Lurie Children’s Hospital of Chicago and the Chicago Department of Public
Nearly half of Americans work on low wages: Study
The state of the US jobs has been studied by the Brookings Institution in a
Choking deaths fall substantially in past 50 years in US children
A report is published in the Journal of American Medicine Association (JAMA). The report revealed
Reports urge investment in IEPA
Reinvestment in the Illinois Environmental Protection Agency needs to be made urgently. This call is
14 metropolitan areas of Illinois experience decreased unemployment rate, BLS says
The unemployment rate fell in all 14 metropolitan areas of Illinois over-the-year in October. The
New American Economy declares Chicago top city in nation for immigrants
The City of Chicago is named the best city for immigrants in the US. The