Monday, July 15, 2024

June US Jobs Report Expected to Show Decreased Yet Strong Hiring Trend | WTAJ

American Job Market Likely Cooled in June, but Remains Healthy: Fed Perspective and Economic Insights

The American job market is expected to show signs of cooling in the upcoming June jobs report, with forecasters predicting a gain of 190,000 jobs, down from the surprisingly robust 272,000 increase in May. Despite this slight slowdown, the unemployment rate is still expected to remain low at 4%, according to experts surveyed by FactSet.

For the Federal Reserve, a deceleration in hiring would be seen as positive news as it could help ease pressure on employers to raise wages sharply, which could contribute to inflation. The economy has added an average of 248,000 jobs a month in 2024, maintaining a healthy pace of growth.

However, some economists believe that the high interest rates implemented by the Fed could eventually weaken the job market. While signs of an economic slowdown are already apparent, most workers are currently experiencing a level of job security.

The Fed raised its benchmark interest rate 11 times in 2022 and 2023 to combat high inflation, but surprisingly, the economy has not suffered a recession. Inflation has also declined from its peak in 2022, although Fed Chair Jerome Powell has stated that further evidence of moving towards the target inflation level of 2% is needed before any rate cuts are considered.

Friday’s jobs report will be closely watched by Fed officials for signs of easing wage pressures. The report comes at a time when Americans are evaluating the economy ahead of the November presidential election, with some feeling the effects of a weakening labor market. Overall, while there may be some signs of a slowdown, the job market is still viewed as healthy and resilient.

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