Job Growth Slowed in June but Remains Healthy
The labor market continues to be resilient. There are signs that the unprecedented growth over the last three years is gradually leveling off, but the market still shows strength. The U.S. economy added more jobs in June than expected. Still, the gains were narrow, primarily across a few sectors, including health care and social assistance, government and construction. Several sectors saw employment shrink, including manufacturing, retail trade and professional and business services. Yet, the market is strong, and rising unemployment with slowing wage growth should help bring inflation under control without tipping the economy into recession. The June jobs report could pressure the Fed to cut interest rates finally.
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