Job market lands softly

Job market lands softly
Job market lands softly

The unemployment rate now exceeds 4%.

Overheating since the end of the Covid-19 pandemic, the US jobs market is showing signs of a soft landing. Up slightly over a month, the unemployment rate is now over 4%, at 4.1%. Job creation remains at levels above expectations, with nearly 206,000 new jobs offered in June. But they are lower than in May.

These data confirm a recent survey according to which, without the rebound in recruitment in the hotel and leisure sectors, job creation in the private sector would be in decline.

The jobs market is one indicator of the long-awaited slowdown in the U.S. economy as the Federal Reserve (Fed) tries to bring inflation back toward its 2% target. Employment is a priority of the central bank’s monetary policy, as is inflation. But the unemployment rate, very low so far, has allowed it to focus on the decline in inflation, which reached 9.5% in June 2022, by raising its rates.

Analysts expect the first rate action in September, when the Fed meets for the last time before the Nov. 5 presidential election. On Tuesday, Fed Chairman Jerome Powell highlighted the positive trend and said the rapidly declining number of job vacancies in the U.S. should lead to higher unemployment.

-

-

PREV In the steppes of Kazakhstan, the return of Przewalski’s wild horses
NEXT Why is there a resurgence of infectious diseases?