far exceeded analysts’ expectations
Unemployment rate is at full employment level for 4th month
Despite concerns regarding a recession, the number of new jobs in the U.S. increased significantly last month. As employment conditions have been solid, it is more likely that the US central bank (Fed) will continue to raise interest rates.
The U.S. Bureau of Labor Statistics announced on the 8th (local time) that the U.S. non-agricultural sector added 372,000 jobs last month. Although it was lower than the 384,000 increase in May, it greatly exceeded analysts’ expectations. Economists expected an average of 250,000 jobs, according to the Wall Street Journal.
The higher-than-expected numbers gave momentum to the Fed’s interest rate hikes. This is because it can be inferred that the labor market will be able to defend to some extent the downward pressure on the economy from the rate hike. The Fed has predicted a 0.75 percentage point rate hike this month.
The unemployment rate in June stood at 3.6%, effectively maintaining full employment. It is the same number for 4 months from last March. The hourly wage in June rose by 5.1% compared to the same period last year. After recording 5.6% in March, the decline continued for three months. The ‘U6 unemployment rate’, which includes part-time workers and the disappointing unemployed who wanted to work but might not find a job, was 6.7%, down 0.4 percentage points from the previous month (7.1%). The economic activity participation rate was 62.2%, down 0.1 percentage point from the previous month (62.3%).
Reporter Lee Joo-hyun deep@hankyung.com
