Official statistics show that the US economy added 372,000 jobs in June, significantly more than was anticipated.
The country was supposed to add between 250,000 and 295,000 new jobs, according to economists.
The US Bureau of Labor Statistics reports that the jobless rate is still quite low.
Some analysts say that the good news about jobs could mean that US interest rates will go up even more.
Seema Shah, chief global strategist at Principal Global Investors, said, “Today’s job number should calm fears of a coming recession, but it does nothing to calm fears of a lot more Fed tightening.”
The employment situation is still quite precarious, indicating continued strong wage pressures.
For the fourth consecutive month, the unemployment rate was unchanged in June at 3.6%.
As in other nations, rising food and energy costs are driving up the cost of living in the US. After inflation reached a 40-year high of 8.6 percent in the year to April, the US Federal Reserve has been raising borrowing costs in an effort to slow the rate of price growth.
Last month, the Fed raised its benchmark interest rate by three-quarters of a percentage point to a range of 1.5 percent to 1.75 percent, the largest increase in nearly 30 years.
US economic growth slowed down in the first three months of the year by 1.6 percent annually, and Fed head Jay Powell recently told Congress that a recession is “a possibility.”
He claims that in the first half of 2022, the US economy and stock market both suffered from threats such as a multi-decade high in inflation, aggressive monetary policy tightening, and the impact of Russia’s invasion of Ukraine.
However, jobs data lags economic indicators, which are frequently high just before a downturn,”
Richard Flynn, managing director at Charles Schwab UK, says that the strong data on jobs goes against what has been said about the economy recently.
