Categories: USA

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.

Gabriella Remillard

Staff writer for the Chicago Morning Star

Recent Posts

Senate Democrats mock Biden for selling weapons to Israel

Some of President Biden's strongest Senate allies are calling on Israelis to end months of fierce fighting and criticizing the…

11 months ago

The biggest cities in Ukraine are struck by Russian missiles, leaving at least 4 dead and over 100 injured

Ukraine's KYIV — At least four people were killed and nearly 100 injured when Russian hypersonic ballistic missiles attacked Ukraine's…

11 months ago

Good News That’s Much Needed for Biden

The economy is making Americans feel a little more upbeat, especially when it comes to jobs and incomes, which could…

12 months ago

College Ventilation System Reveals Missing Man

The discovery of a decaying body inside a college ventilation system marked the tragic and unexplained end to a missing…

12 months ago

Following three Palestinian shots, a Vermont man was arrested

Following the shooting deaths of three 20-year-old Palestinian-American students in Vermont, authorities have detained a man. According to a news…

12 months ago

China is told to cease “COVID deception” due to the pneumonia outbreak by the US envoy

The United States ambassador to Japan, Rahm Emanuel, urged Chinese authorities "to abandon COVID deception" and demanded that China be…

1 year ago

This website uses cookies.