Agency Report
The economy of the United States (U.S.) has recorded boost, creating 209,000 new jobs in the month of June. However, Labor Department was cited to have said on Friday that job creation in the economy slowed down from 306,000 in May. The unemployment rate in the U.S. economy was also said to have declined to 3.6 percent.
MarketWatch, in a survey of economists, noted that the hiring figure has fallen below the median expectation of 240,000 new jobs but the unemployment rate complied with predictions.
The Labor Department indicated that the American economy may be adjusting towards another interest rate decision later in the month of July.
But despite the slowdown in job creation, analysts say the Fed is unlikely to hold off another interest rate hike at its next meeting.
Oxford Economics’ lead US economist Oren Klachkin, was cited to have stated that “It’s a step in the right direction but we’re not near the level that we would need to see to be convinced that the labor market is significantly cooling down.”
According to Klachkin, “The labor market is still very strong, wages are still rising at a very strong pace, unemployment is still very low, and nonfarm payrolls rose at a pace that is way above what the Fed wants.”
President Joe Biden of the United, on Friday, commended the jobs report as identified in the “Bidenomics in action.”
The President in a statement by the White House, declared: “Our economy added more than 200,000 jobs last month—for a total of 13.2 million jobs since I took office.
“That’s more jobs added in two and a half years than any president has ever created in a four-year term.”
KPMG chief economist Diane Swonk was cited to have noted “The economy has proven remarkably resilient, with smaller businesses absorbing layoffs at larger firms.”