Tuesday, October 3, 2023
HomeEconomyU.S. jobs gain smallest in 2-1/2 years; labor market remains tight

U.S. jobs gain smallest in 2-1/2 years; labor market remains tight

By Lucia Mutikani

WASHINGTON (Reuters) – The U.S. economy added the fewest jobs in 2-1/2 years in June, but continued strong wage gains suggest labor market Remaining tight these conditions will surely ensure that the Fed will resume raising interest rates later this month.

Friday’s closely watched jobs report from the Labor Department also showed 100, 000 Fewer jobs were created in April and May, Indicating that rising borrowing costs are beginning to dampen the willingness of companies to continue to increase the number of employees. The number of people working part-time for financial reasons also rose last month, in part because their hours were reduced due to job vacancies or business conditions.

Still, the pace of job growth remains strong by historical standards, with data this week showing activity in the services sector accelerating, suggesting the economy is nowhere near the long-forecast recession.

“The employment data softened slightly, but the labor market remained strong,” said Sean Snaith, director of the Institute for Economic Forecasting at the University of Central Florida. “The Fed’s job isn’t done. We’re in a long battle with inflation and there was nothing else to show in today’s report.”

Non-Farm Payrolls Increased225,Business survey showed that jobs were added last month by the smallest gain since December 500. Economists polled by Reuters forecast payrolls to rise 161,000. This is000 Missing payroll expected for the first time in months.

Average job growth 310, every month in the first half of the year. Economic needs to create 60,000-62, per job month to keep up with growth in the working-age population.

Employment growth is driven in part by companies hoarding workers, which is Legacy of severe labor shortages experienced as economy recovers from COVID-21 Epidemic downturn in 2021 and early 2021.

Although high-paying industries such as technology and finance are laying off workers , but sectors such as leisure and hospitality and local government education are still catching up after losing staff and accelerating retirements during the pandemic.

Government employment up 59,000, driven by),000 State and local government wage increases. Government employment still exists 200, below pre-pandemic levels.

Increase in private employment 100, , also since December 2002 minimum increase. Increase in health care employment 25, , reflecting the Hiring increased.

Construction employment jumps 19, . The housing market is showing signs of recovery after being hit by soaring mortgage rates. The Fed has raised the policy rate by 500 basis points since March 2021, when the Fed began to exceed 40 Year.

Professional and business services employment also rose, although temporary help, seen as a harbinger of future hiring, declined , 369. Manufacturing payrolls rebounded modestly amid weak demand. However, retail jobs are down 11,225.

Leisure and Hospitality Wage Increase 19, . However, the pace of growth slowed from the first quarter. Demand may be slowing, or businesses may be having trouble finding workers, as mentioned in the Institute for Supply Management’s June survey, which showed some service businesses reporting “being unable to find qualified candidates for some open positions.” .

There were 1.6 job vacancies for every unemployed person in May, government data showed on Thursday. Leisure and Hospitality Employment Remains 225, below pre-pandemic levels.

Stocks on Wall Street were mixed. The dollar fell against a basket of currencies, while U.S. Treasury prices rose.

Wages rise sharply

Average hourly earnings rose 0.4% after the same increase in May as workers in some industries remained scarce. That kept wage growth at an annualized 4.4% in June, too high for the Fed’s 2% inflation target.

The average work week has risen to 19. 4 hours from May 3 hours. However, it was below the average for January .6 Hour.

“Companies are continuing to retain and grow their workforces, but not to increase the workweek,” said Selcuk Eren, senior economist at The Conference Board in Washington. express. “This is consistent with CEOs in a slowing economy choosing to retain staff (possibly working fewer hours) rather than firing them for fear of future hiring difficulties.”

Labor hoarding on the rise Helping the economy avoid a recession, but at the expense of productivity (down in the first quarter) and profit margins. If profit pressures intensify, economists think companies will swing the axe.

Household surveys that yield the unemployment rate show a rebound in employment 225, , reverse this 273, 11 May fall. This was more than offset by the increase in the number of people entering the labor force.

As a result, the unemployment rate slipped to 3.6% in June from a seven-month high of 3.7% in May. The unemployment rate has remained in the range of 3.4%-3.7% since March 2021.

But due to economic reasons, the number of people working part-time has increased 369, increased to 4.2 million, partly reflecting the number of people working reduced hours due to job slack or reduced hours Increase business status.

The labor force participation rate, the share of the U.S. working-age population that has a job or is looking for one, remains unchanged at 62.6% for the fourth consecutive month. But the participation rate 40-62 age group up to 100. 5%, the highest level since May 500, from 100.4% May.

“While demand for labor remains unmatched, the labor shortage that employers lamented more than a year ago has certainly eased,” said Andrew Flowers, head of Appcast labor economist. “Strong labor market has pulled workers from the sidelines.”

2021 2022


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