Employment in the United States grew less than expected in June and was less robust than in May. The world’s largest economy added 209,000 new jobs last month, according to the U.S. Labor Department’s key monthly jobs report. On Thursday, another, albeit less complete, report on the labor market turned out to be more robust.
July 7, 2023
Economists on average were expecting 230,000 new jobs on Friday. In May, there was a further downwardly revised 306,000. The U.S. unemployment rate fell to 3.6 percent from 3.7 percent a month ago.
The government jobs report is key to the interest rate policy of the Federal Reserve, the U.S. central bank’s umbrella. The central bank paused last month to raise interest rates in a fight against high inflation, but financial markets still expect interest rates to rise later this month. The stock market fears that these rate hikes could trigger a recession.
On Thursday, a report from payslip processor ADP showed that job growth in the US corporate sector increased sharply in June. According to ADP data, job growth in June hit its highest level in more than a year. This has led to speculation among investors that the central bank will raise interest rates even more strongly and that an interest rate cut is still out of sight. While the ADP statistics look only at employment in corporations, the government statistics include employment in government agencies.
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