The jobs report- Where are the jobs in the U.S today?
Employers in the United States added more jobs than expected in June, and the unemployment rate remained near a five-decade low, indicating that hiring needs are outweighing concerns about the economy.
- Average hourly earnings rise 0.3%; up 5.1% year-on-year
- Private sector employment back above pre-pandemic level
- Unemployment rate holds steady at 3.6%
- Nonfarm payrolls increase 372,000 in June
Different industries are booming with new job opportunities. Healthcare, information, transportation, and warehousing are growing rapidly and hiring many new employees. With 29,000 new jobs in manufacturing, this industry has made a full comeback from the pandemic. Construction is also increasing with 13,000 new jobs.
As the Fed continues to raise interest rates in order to control inflation, many companies have announced plans to reduce staffing levels. So far, the majority of layoffs have taken place in technology and interest-rate sensitive sectors like housing. However, there are still many businesses that are struggling to fill millions of open positions due to a lack of workers.
Nonfarm payrolls increased 372,000 in June, following a revised 384,000 increase in May, according to a Labor Department report released on Friday. The unemployment rate remained at 3.6 percent, while average hourly earnings increased 0.3 percent from the previous month.
The median estimate in a Bloomberg survey of economists predicted a 265,000 increase in payrolls and a 3.6 percent unemployment rate. The average hourly earnings for workers rose by 5.1% from the previous year, according to a report released on Friday. This is a slight increase from the 5.3% gain that was reported in May.
Despite bids from employers to attract and retain workers, wages are still falling short of the rapidly increasing prices. The Federal Reserve would welcome a cooling in wage pressures as they seek to limit inflation. Biden said in a statement, “No country is better positioned than America to bring down inflation, without giving up all of the economic gains we have made over the last 18 months.”