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In recent news, the US added 206,000 jobs in June, beating forecasts but down from the previous month. Non-farm payrolls were expected to increase by 190,000, but only 133,567 were added. Despite this slight decrease in job growth, economists are still optimistic about the strength of the US labor market.
The Bureau of Labor Statistics released its report on Friday and revealed a slight increase in the US unemployment rate from 4.0% to 4.1%. This slight increase was due to a decrease in employment among workers who are discouraged or voluntarily unemployed. However, overall employment remains strong and has been increasing steadily over the past two years.
As a result of this strength in the labor market, the Federal Reserve has taken a cautious approach to lowering borrowing costs. The central bank is closely monitoring employment conditions and inflation to guide its decision on when to begin an interest rate cutting cycle. Just days after the minutes of their June meeting showed members of the rate-setting committee were more attentive to downside risks to the US labor market, Friday’s data provides further insight into this developing story.
Overall, while there have been some slight decreases in job growth and an increase in unemployment rates for certain groups of workers, the overall health of the US labor market remains strong and continues to support economic growth and stability.
