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Tuesday, December 06, 2022

372,000 jobs created in the US; sign of flexibility

WASHINGTON ( Associated Press) – US employers seemed heedless to high inflation and weak growth in June, adding 372,000 jobs, a surprisingly strong gain that likely sees the Federal Reserve continue raising interest rates. Interest and slow price increase to cool the economy.

The unemployment rate in June stood at 3.6% for the fourth straight month, the Labor Department reported on Friday, hitting a nearly 50-year low before the coronavirus pandemic hit in early 2020.

Last year’s strong hiring streak has been good for job seekers and meant higher wages for many employees, but it helped fuel the highest inflation in four decades and increased pressure on the Federal Reserve to cut more Gave. loans and expenses.

Many employers continue to struggle to fill jobs, especially in the vast service sector of the economy, and Americans now travel, eat out and attend public events more often.

The Fed may see June’s job creation as evidence that the rapid pace of hiring is driving inflation as companies hire workers before raising the prices of their products and services to cover the increase in labor costs. Increase wages to attract and retain.

The Fed had already begun its fastest series of rate hikes since the 1980s, and the big new hikes would make borrowing more expensive for consumers and businesses, as well as increasing the risk of a recession.

The constant desire to hire and grow multiple companies provides a safeguard against the possibility of the economy slipping into recession in the next year. Even if there is an economic downturn, last year’s healthy job and wage growth may help keep it relatively short and mild.

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