The US labor market slowed down: June set an anti-record over the past two years

US job growth slowed last month. This suggests that the increase in the base interest rate puts pressure on the US economy and, perhaps, begins to slow it down. The edition told in more detail with the BBC.

Photo: IStock

Employers added 209 jobs in June, the smallest increase in more than two years, according to the Labor Department.

This was less than expected, although the unemployment rate still fell to 3,6% from 3,7% in May.

The labor market is being watched closely as the US central bank raised interest rates on loans to fight inflation.

On the subject: Fraudsters steal money and personal data pretending to be employers: how to recognize fraud

Employment remains strong, although the Federal Reserve's benchmark interest rate jumped slightly over the year to more than 5%.

Analysts said in June that the 209 jobs added were more than enough to support a larger workforce, though this is the smallest number since December 000.

Wages also continued to rise, with average hourly wages up 4,4% year-over-year.

But the monthly report is accompanied by other data, such as job cuts, that suggest the job market may be cooling.

“Today’s jobs report is a little weaker than many expected,” said Richard Flynn, managing director of Charles Schwab UK. “The labor market remains tight, but investors are likely to interpret these numbers as a sign that cracks are starting to appear.”

Economists have been predicting slower growth for months now as higher interest rates force consumers to cut spending elsewhere and make it more costly to borrow to expand businesses.

But job growth has consistently outperformed forecasts, and ADP's hiring report offered hope that that will continue. However, the Labor Department report painted a slightly different picture—showing that government and health care firms boosted hiring in June.

Retail and transport companies have cut jobs, while leisure and hospitality businesses have added just 21 jobs, leaving overall employment in the sector below pre-pandemic levels.

Analysts are still waiting for the US central bank to raise rates again at its meeting this month.

You may be interested in: top New York news, stories of our immigrants and helpful tips about life in the Big Apple - read it all on ForumDaily New York

While inflation in the US has fallen year-on-year to 4%, it remains above the Federal Reserve's 2% target.

Forecasts released by the bank at its last meeting showed that most officials thought they would need to raise interest rates to stabilize prices.

“Job growth has slowed but remains too strong to justify an extended Fed pause. More importantly, given the unexpected rise in average hourly wages, the pressure is still too much, said Seema Shah, chief global strategist at Principal Asset Management. “Today’s report will not give the Fed much reason to refrain from participating in the July meeting.”

Read also on ForumDaily:

Homes built from hemp in Britain: why you might want one too

Cheap places to live in the 10 most expensive states in America

Former FBI Agent Reveals XNUMX Communication Secrets That Will Help You in Everyday Life 

Scientists make cancer cells commit 'suicide': this is the future of cancer treatment

The couple moved into a van to save money, but gas and parking costs were higher than expected

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.