According to the monthly jobs report from the Bureau of Labor Statistics (BLS), the US economy added 372,000 new jobs in June, exceeding expectations and providing citizens with a surge in hiring.
The unemployment rate remained around 3.6% as well. In May, 384,000 new jobs were added, so while June’s numbers were slightly lower, it still exceeded economist’s expectations. Economists initially were expecting around 272,700 jobs to be added in June.
BLS data shows that the US job market is just 524,000 jobs away from pre-pandemic levels where unemployment rates were reaching record lows.
Professional business services, leisure/hospitality sectors, and the healthcare industry saw the biggest gains in jobs, with additional increases in food services and warehouse/storage positions.
The job market in general has been a major force in keeping the US economy strong. The latest Job Openings and Labor Turnover Survey data released “showed there were 11.3 million available jobs in May, or 1.9 positions for every job seeker, along with historically low levels of layoffs.”
America is currently experiencing the highest inflation rates in 40 years, however, wages continue to rise. Average hourly wages were up by 5.1% within the past year, and the labor participation rate is at a steady 62.2%, just 1.2% less than pre-pandemic levels.
“The job market is still plowing forward even in the face of increasing headwinds and recession fears. Even if the economy is slowing, the labor market remains a point of strength for the recovery. Strong employer demand is supporting solid but slowing job gains,” Daniel Zhao, Glassdoor senior economist, said in a statement.
“The employment report does nothing to dissuade Federal Reserve officials from sticking to their interest rate raising plans, looking to send inflation down, and closer to their 2% target. The next key reading for the Fed is the Consumer Price Index due in the days ahead,” ” said Mark Hamrick, senior economic analyst for Bankrate, in a statement. “
An increase in Covid cases in May prevented a lot of Americans from re-entering the job market last month, making the increase even more unexpected.
Due to the increase in Covid cases in May, around 610,000 people were unable to look for work in June, up from 455,000 in the previous month. This is the first increase in this sector of data since January when the Omicron variant first appeared in the US.
The most recent Household Pulse Survey from the Census Bureau also showed that “the pandemic took more of a toll on Americans’ ability to work in June. Nearly 3.7 million people said they were not working because they were sick with Covid symptoms or were caring for someone who was sick, according to the survey, taken in the first two weeks of June.”
Eric Mastrota is a Contributing Editor at The National Digest based in New York. A graduate of SUNY New Paltz, he reports on world news, culture, and lifestyle. You can reach him at email@example.com.