The economy added 372,000 jobs in June, which may ease worries about a looming recession, but it provided a bigger-than-expected boost to the labor market as it seeks to tame inflation.
The unemployment rate was 3.6 percent, the same as a month ago, the Labor Department said Friday.
The number is in line with average gains over the past few months, including 368,000 in April and 384,000 in May. Employers have continued to compete for workers in recent months, with initial jobless claims rising slightly from a low point in March.
There are 664,000 jobs in the public sector below February 2020. Apart from the public sector, the private sector has now regained its pre-eminent jobs. No businesses lost jobs in JuneOn a seasonally adjusted basis.
There is no guarantee that rapid growth will continue indefinitely, however, as skyrocketing prices continue to weigh on consumer spending. The labor force is constrained by aging statistics, low levels of immigration, and barriers to employment that keep many out.
“We’re not going to continue the employment growth we’ve been seeing — it’s going to stop,” said Julian Richers, vice president of global economic research at Morgan Stanley. However, it will take some time for America’s appetite for labor to subside.
“There’s still a lot of demand for workers,” Dr Richers said. “As the economy slows, it makes sense that employment should also slow as we work through the recession in labor demand.”
That backlash is palpable 11.3 million jobs Employer openings in May are near record highs and nearly two jobs are available for every job seeker. In that equation, any workers laid off when certain sectors are in crisis are likely to find new jobs quickly — at least.
But many headwinds create a time limit to the market for that seller’s labor. Business leaders say domestic demand remains strong and some supply chain issues have eased, with order backlogs no longer growing and savings accounts shrinking. Whenever possible, employers are automating tasks rather than bringing in new employees.
“Employers are not anxious to fill those job openings as the economy slows down,” said Bill Adams, chief economist at Comerica Bank.
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