The labor market continues to be strong in spite of high inflation.
In June, another 209,000 jobs were added and the unemployment rate dropped slightly from May from 3.7 percent to 3.6 percent, according to the newest numbers from the U.S. Bureau of Labor Statistics.
“Both the unemployment rate, at 3.6 percent, and the number of unemployed persons, at 6 million, changed little in June. The unemployment rate has ranged from 3.4 percent to 3.7 percent since March 2022,” the BLS report said.
The strong labor market has complicated the Federal Reserve’s efforts to bring down inflation, which was at a 4 percent in June. It is lowest 12-month increase since March 2021. The Federal Open Market Committee last month elected to maintain a target rate for federal funds at 5 to 5.25 percent. It ended a streak of 10 straight hikes in interest rates since early 2022. Federal Reserve Chair Jerome Powell said officials will be monitoring market to make decisions on future hikes.
The labor participation rate stayed at 62.6 percent for a fourth consecutive month.
The 209,000 jobs were well behind the pace of May, when 339,000 positions were added.
“Nonfarm employment has grown by an average of 278,000 per month over the first 6 months of 2023, lower than the average of 399,000 per month in 2022,” said BLS report.
Government employment grew by 60,000 jobs. Healthcare added 41,000 jobs. Social assistance had an increase of 41,000. Construction added 23,000 jobs. Hospitality saw an increase of 21,000 jobs.
The average hourly earnings rose by 12 cents, or 0.4 percent, to $33.58. Earnings are up 4.4 percent in the past year.
The average workweek increased slightly from 34.3 hours to 34.4 from May to June.
