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HomeLatest NewsThe fall in the unemployment rate in the US puts the Federal...

The fall in the unemployment rate in the US puts the Federal Reserve at a crossroads

Date: June 19, 2024 Time: 01:11:41

Job creation in the United States slowed down considerably in June, although the rate fell one tenth to 3.6%, according to data published this Friday by the Bureau of Labor Statistics (BLS). Thus, in the sixth month of the year, 209,000 net jobs were created, 130,000 fewer than in May, at a time when the effects of the interest rate hikes carried out on the labor market were closely analysed. the Federal Reserve (Fed) to curb inflation.

The net number of job creation is below the average of the last six months, which is 278,000 jobs created. In 2022, the average was 399,000 jobs created per month, so the effects of rate hikes would already affect job creation, even though the unemployment rate remains low.

In June, unemployment fell one tenth after it rose three in May. The BLS recorded that, since May 2022, this indicator has always oscillated between 3.4% and 3.7%.

Average earnings/hour on the rise

In total, 6 million Americans found themselves without jobs at the end of June, a month in which employment continued to trend upwards in government, health care, welfare and construction. In June, average hourly earnings for all employees on private nonfarm payrolls rose 12 cents, or 0.4%, to $33.58.

Over the past 12 months, average hourly earnings have suspected 4.4%, at a time when inflation stands at 4%, according to the latest data for May. Since peaking at 9.1% in June 2022, inflation has been falling as a result of the Fed’s series of rate hikes to lower prices.

At its last meeting, in mid-June, the Fed had to temporarily pause hikes although it noted that further hikes are likely to be necessary. Rates are in a range of 5-5.25%, the highest since mid-2006.

These probable new increases reached macroeconomic figures such as unemployment or inflation. The Fed will hold its next meeting on July 25 and 26.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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