In a surprising turn of events, America’s employers added 209,000 jobs in June, indicating that the economy’s strength is defying the Federal Reserve’s efforts to slow down growth and inflation, according to the AP. This positive economic momentum almost guarantees that the Fed will resume its interest rate hikes later this month. It’s worth noting that the job figures were slightly lower than expected, as predicted by the Wall Street Journal. However, investors seem undeterred, with stock futures remaining stable after the report, suggesting that there is confidence that the rate hikes will not be as drastic or prolonged as initially feared.
While the June hiring figure is lower than previous months, it still indicates that the labor market is strong, with a historically high number of job openings. The unemployment rate also dropped to 3.6%, nearing a five-decade low. The steady pace of hiring, coupled with rising wages, has enabled consumers to continue spending on various services such as travel, dining out, and entertainment. Despite economists’ repeated predictions of an upcoming recession, as long as companies continue to fill jobs steadily, a downturn is unlikely.
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