The U.S. economy added 372,000 jobs in June, an unexpected rise in employment and a sign that the labor market remains strong despite fears of a collapse, according to a monthly report by the Bureau of Labor Statistics released on Friday.
The unemployment rate stabilized at 3.6%, still close to the 52-year low that reached the months before the epidemic.
The number of jobs in June, slightly lower than the May 384,000 jobs added, was a huge success. expectations. Economists interviewed by Refinitiv predict that 272,700 jobs will be added in June, amid growing economic woes and growing fears that the recession is approaching.
The main benefits of June’s activities came from the arts and business activities, entertainment and hospitality and healthcare industries, and a significant increase in areas such as food and storage services and storage.
President Joe Biden praised the latest job statistics in a speech to the White House on Friday, saying, “This is why it is so important: Our business community has restored all work lost during the epidemic and added jobs on top of it.”
The president acknowledged the ongoing crisis in inflation, but also said that job numbers show that his fiscal policy is working.
“I know the times are hard. Prices are very high. Families are experiencing financial hardship. But today’s financial crisis confirms that my financial system is doing well in this country,” Biden said.
Business group operations have now increased in February 2020 with 140,000 jobs. However, government employment continues to decline by 664,000, placing the entire labor market at 524,000 jobs leading to the pre-epidemic outbreak.
The labor market remains the strongest source of income for the economy. The latest version of the Job Openings and Labor Turnover Survey released earlier this week revealed that there were 11.3 million jobs created in May, or 1.9 million jobs per job seeker, as well as a declining record.
June salaries were still rising, but continued to fall with the highest inflation in 40 years. Earnings per hour have risen by 5.1% in the last 12 months. Stakeholder risk, at 62.2%, changed slightly from last month but remains below the pre-epidemic epidemic of 63.4%.
“The labor market continues to thrive even in the face of increasing pressures and financial fears,” Daniel Zhao, an economist at Glassdoor, said in a statement. “Even though the economy is slowing down, the labor market remains strong to recover. Strong demand from employers helps to create harder jobs but slows it down.”
The fastest-growing prices are the Federal Reserve which is at risk of successive price hikes in order to reduce the economy. Following the rise of the central bank rates in June by 75 points – the highest rate since 1994 – Fed Chairman Jerome Powell indicated another significant increase of 50 or 75 points at the next meeting on July 26-27.
June’s strong performance report will not prevent the Fed from carrying out its promises, says John Leer, an economist at Morning Consult.
“They have clearly stated the purpose of raising inflation and are waiting to see how inflation affects the economy, and I think they will continue the trend, which should continue to be brutal,” Leer said in a statement. interview with CNN Business. “In addition to looking at the crisis, they are also deeply affected by the reliability of the financial markets, and the consumers. Once they are here to save prices, they need the American people to believe this, especially the financial markets.”
Next week’s key financial reports – the latest Consumer Price Index, Manufacturer Price Index, retail sales and consumer sentiment – will be crucial in assessing the financial health and impact of the Fed’s actions, he added.
But if the Fed is too harsh, this could lead to retaliation, says Josh Bivens, director of economic research at the Economic Policy Institute.
“This is still a difficult labor market, it does not seem to me to be a fast-growing, labor-intensive market; “Instead, it shows signs of a cold,” Bivens said.
The slowdown in wage growth and the continued decline in labor costs per month are some of the factors that indicate that the labor market has risen sharply, he said.
“Given that the main reason the Fed tends to raise prices to reduce inflation is working in the labor market and under pressure to pay, the work is done more often, so I am not sure what the rising risk will do other than this,” he said.
The epidemic prevented many Americans from re-employed in June, which saw an increase in Covid-19 cases since May.
Of those who did not work, about 610,000 people could not find work in June due to the epidemic, up from 455,000 last month. This is the first increase in the number since the Omicron brand swept the country in January.
A recent Household Pulse study from the Census Bureau also showed that the epidemic severely disrupted the ability of Americans to work in June. An estimated 3.7 million people are said to be unemployed because they are ill with Covid or caring for a sick person, according to the study, which took place in the first two weeks of June.
That figure was 3.1 million in the first survey, which took place between April and early May.
“There are indications that Covid, especially the recent Omicron waves, has disrupted operations in some way so you can see the number of people who are out of work but sick,” said Nick Bunker, chief financial officer for North America. In fact, the Hiring Lab cites home research, which is one of two surveys that fall into the BLS monthly report. “The number of sick workers in June 2022 was not as high as it was before the epidemic, it is more than we saw in June 2020.”
But the difference this time around from the last two years, he said, is that people are not being kept in the job market because of Covid.
“It looks like the Covid problem still exists in the labor market,” he said, “but it seems that maybe people are getting sick, going sick for a week and going back to work. [as opposed to] people living alongside the labor market. ”
CNN’s Tami Luhby and Maegan Vazquez contributed to this.