Washington DC [US], July 2 (ANI): The US job growth slowed in June as data from the Bureau of Labor Statistics showed that non-farm payrolls increased by 57,000 jobs compared to a revised 129,000 in May.
However, the US unemployment rate dropped to 4.2 per cent, pointing to a stable labour market as hiring stabilised amid growing investments in artificial intelligence.
“Employment continued to trend up in professional and business services, social assistance, and health care. Leisure and hospitality lost jobs,” the bureau said in its release.
There was little change in both the unemployment rate and the number of unemployed people from the May numbers. A total of 7.1 million people were unemployed in June. The reduced labour force participation led to stability in the unemployment rate.
The labour force participation rate decreased by 0.3 percentage point to 61.5 per cent in June.
Those who have been unemployed for a longer period (27 weeks or more) stayed at 1.9 million, changing little in June but grew by 286,000 over a year.
“The long-term unemployed accounted for 27.3 per cent of all unemployed people in June,” the data showed.
Sector-wise, professional and business services added 36,000 jobs in June while social assistance added 25,000 jobs, primarily in individual and family services. Healthcare employment continued to grow, adding 22,000 jobs in June but staying below the monthly average of 38,000 in the prior 12 months. Leisure and hospitality employment declined by 61,000 in June, reflecting weaker-than-usual seasonal hiring despite the Football World Cup happening in the US.
A stable jobs market gives respite to the US Federal Reserve, but the inflation rate that has been above its comfort level of 2 per cent is going to weigh on any policy decision.
In the last month’s policy review, the federal funds rate was maintained at 3.5-3.75 per cent. However, expectations of a hike this year have gained traction on the back of high energy prices despite a drop in crude oil prices after the US and Iran struck an interim peace agreement. (ANI)
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