The U.S. economy added 372,000 jobs in June while the unemployment rate held steady at 3.6%, according to Department of Labor data released Friday, far outpacing economists’ projections of 250,000 new jobs. The job growth may be good news, however, it could cause the Federal Reserve ( ) to raise interest rates aggressively, which would increase the risk of a recession later in 2019. The total number of unemployed people remained essentially unchanged at 5.9 million, the report found.
— BLS-Labor Statistics (@BLS_gov) July 8, 2022
“The CPI has gotten all the attention for the past 18 months, but with the U.S. on recession watch, the jobs report is back as the most important data every month,” president of the American Action Forum Doug Holtz-Eakin told Axios.
The latest Job Openings and Labor Turnover Survey, released on Wednesday, showed there were 11.3 million job openings in May, or 1.9 positions for every job seeker. (RELATED: Biden Poised To Lift Trump-Era Tariffs On China As US Economy Teeters On Recession)
But there have also been signs that job growth might be slowing and some firms could be planning for downsizing. Data released Thursday by market research firm Challenger, Gray & Christmas revealed that US employers announced 32,517 layoffs in June, a 58.8% increase from June 2021.
Job gains were reported in the business and professional services, leisure, hospitality and healthcare sectors. The growth represented a slight month-over-month decrease compared to May when the economy added a more-than-expected 390,000 jobs.
The labor force participation rate of 62.2% remained below its February 2020 pre-pandemic level of 63.4%.
The report is coming after the financial markets had their worst six-months in fifty years. All eligible news publishers who can reach a wide audience are free to access Content compiled by The Daily Caller News Foundation. For licensing opportunities of our original content, please contact [email protected].