United States: Job gains exceed expectations in June
July 8, 2022
Total non-farm payrolls increased by 372,000 in June, down slightly from May’s 384,000 revised figure but above market expectations of 268,000. Employment gains were particularly strong in professional and business services, leisure and hospitality, and health care.
Meanwhile, the unemployment rate was unchanged at 3.6% in June, while hourly earnings were up 0.3% month-on-month and 5.1% year-on-year. All in all, the data shows the labor market remained robust in Q2 despite recession fears. However, employment growth is gradually trending down, firms are struggling to find staff and elevated inflation—which is currently tracking well above wage growth—is hurting purchasing power.
On the outlook, TD Economics’ Thomas Feltmate said:
“The pace of hiring remained exceptionally strong in June, surpassing even the most optimistic forecast. With the labor market having almost recovered all of the 22 million jobs lost during the early stages of the pandemic, and the core working age participation rate nearing its pre-pandemic level, job growth is bound to slow over the coming months.”
Author: Oliver Reynolds, Economist