The US labor market added 372,000 jobs in June, a much bigger jump than expected that shows strength in parts of the economy.
The manufacturing and housing sectors are sensitive to interest rate hikes and have been signaling a decline in activity over the past six months. Tech layoffs began as a result of the dive in tech stocks. The jobs report showed job growth in all of the sectors.
Employers can't hire fast enough to meet demand and the US labor market is bucking gravity.
The strong jobs report should make people feel better about the economy. While inflation is making Americans cut back on shopping, they are still spending money on vacations and other outings. Employment in business services is increasing as a result of the return to the office.
The number of private sector jobs in the US remained the same in June. The public sector is short by half a million jobs.
On the heels of a strong labor turnover report that showed job openings and quits remained near record highs, all of this has happened. That makes it less likely that the US will tip into a recession.
The robust job picture will make it harder for the Fed to maneuver as it tries to contain inflation. Powell wants wage growth and job openings to slow down in order to reduce demand and prices.
Average hourly earnings continued to grow in June but at a slower pace than in the previous months. There are signs that it is getting harder for some workers to find work.
The labor market may not be as strong as the Census Department suggests. The most recent increase in unemployment insurance applications is not included in the figures released Friday because the data for the jobs report was collected in June.
There have been signs that gross hiring has slowed down a bit. Layoff rates are not alarming but should be expected to slow down.
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