Finance & Economics

US Job Growth Demonsrates Slowdown

In June, a slowdown in the dynamic of job growth was recorded in the United States, which was a completely expected result.

US Job Growth Demonsrates Slowdown

Last month the economy of the mentioned country added 206,000 jobs. The relevant information was released by the Bureau of Labor Statistics on Friday, July 5.

Also last month, the United States recorded an increase in the unemployment rate. The corresponding figure reached 4.1%. This result was unexpected compared to preliminary estimates by representatives of the community of experts. Economists polled by the media predicted that the unemployment rate in the United States for June would show no change and remain at the previous level of 4%. They also expected that the economy would add 190,00 jobs. In this case, the final result was more optimistic.

The last time the unemployment rate in the United States was as high as it is now was in November 2021. At that time, the country’s economic system was recovering from the somewhat extreme period of the coronavirus pandemic.

US treasury yields have been on a wild ride after the election debates, following which many experts began to talk about the growing likelihood that Donald Trump will return to the White House. After data on the labor market situation was published on Friday, the mentioned indicator started to retreat.

According to median projections made last month at a meeting of Federal Reserve officials, the unemployment rate in the United States was not expected to exceed 4% by the end of the current year. However, the real state of affairs turned out to be less optimistic. The current situation in the United States labor market may become an argument in favor of easing the monetary policy of the country’s financial regulator as early as September. It is also not the minimal possibility that, against the backdrop of the current unemployment rate, the Fed to lower the cost of borrowing more than once in 2024.

For the dollar exchange rate, the situation in the labor market will probably not become an impact factor. It’s worth noting that there are many fun facts about US currency.

Joe Gaffoglio, president of Mutual of America Capital Management, says the United States labor market remains strong despite the unemployment rate rising in June.

Eric Roberts, executive director and US CEO at Fiera Capital, stated that the strength of June’s data is playing tug of war with the tight monetary policy. The expert also noted that wage growth and consumer spending continue to be surprisingly persistent at a time when the Fed is keeping interest rates high to curtail spending.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.