In the United States, the labor market showed signs of a steady slowdown in June as nonfarm payrolls rose by 206,000 and the unemployment rate increased to 4.1%, according to reports from various sources including Bloomberg, CNN Business, The New York Times, and CNBC.
The Bureau of Labor Statistics reported that government and health care dominated the hiring in June. However, temporary help fell by 48,900 in June - the most since April 2021. This could indicate a weakening job market with fewer opportunities for employment.
Average hourly earnings climbed by 0.3% from May and took an annual increase of 3.9%. Despite this, wage growth has been moderating since late 2021 when earnings growth was above 5%. The median time it takes to find a job rose to 9.8 weeks in June, up from the previous month's figure of 8.9 weeks.
The Federal Reserve officials focus primarily on inflation gauges to determine if price hikes are under control or not. Strong wage growth can put upward pressure on prices, but a weakening job market with fewer opportunities for employment generally means that employers aren't as motivated to jack up wages to lure talent.
The unemployment rate for Black workers rose to 6.3% in June, and long-term unemployment also rose sharply to 1.5 million compared with 1.1 million a year ago.
These reports come after the Federal Reserve signaled that it could cut interest rates as early as September due to concerns over slowing economic growth and inflation pressures.
It is important to note that these sources may have biases, and it's crucial to consider diverse perspectives when forming an opinion on the labor market.
