Bureau of Labor Statistics Report
US Secretary of Labor Marty Walsh issued a statement on the June 2022 Employment Situation Report. According to the Bureau of Labor Statistics Report, there were 372,000 jobs in the US Economy in the month of June.
But the unemployment rate remained at 3.6%. In the month of June, job creation has happened at a very fast pace. It was more than expected.
However, the addition of 372,000 new jobs in the United States amid speculation of inflation and recession, shows the strong base of this economy. Job creation is the biggest strength for any economy.
With the increase of Non Farm Pay Rolls to 3,72,000, it is a good sign for the economy. But the unemployment rate is 3.6%, which has not changed as compared to last month.
Economy’s Outlook
Inflation has reached the highest rate so far in 40 years. If we talk about the outlook of the economy, then a lot of uncertainty can be seen in it. The consumer has cut back on spending more money.
Home sales have also declined significantly due to inflation. The Federal Reserve has raised interest rates to control inflation. But this move by the Federal Reserve is fearing a recession.
Because business people and consumers will not be able to spend much money. Rates can be increased further in the coming months. Policy makers have indicated that they will increase the rate to zero point 75 percent.
The education and health services sector has created the maximum number of Jobs. This sector has hired 96000 people. Whereas Professional and Business Services has filled 74000 posts.
The leisure and hospitality sector has provided 67000 jobs. Health care sector created 57000, while transportation and warehousing sector got 36000 new Job Opportunities. But there has been a decline of 9000 in Government Jobs.
Cecilia Rouse’s Statement
Cecilia Rouse, chair of the white house’s council of economic advisers, says this report shows that our labor market remains strong.
Despite many challenges, it reflects the fact that, the US Economy still has some room to face the challenges. Like the Federal has negotiated very well with inflation and we are also dealing with Uncertainty The federal interest rate is raised to reduce demand.
The economy can be slowed down, without going into recession. Due to inflation, the lowest income household has suffered the most. According to Bank of America credit and debit card data, spending is down 1% across sectors.
The USA Government has also announced funding of $140 million. Which will be done through quality jobs, equity, strategy and training etc. To provide Jobs, Employment Training and services to America’s unemployed and underemployed workers.
In the second quarter of June, America’s GDP declined at an annual rate of zero point 9%. According to data from the US Bureau of Economic Analysis, the US GDP declined by 1.6% in the January-March quarter. GDP has not increased in the second quarter as well. GDP has fallen downwards.
Addressing the country, President Joe Biden said that, although the rate of growth of the economy is slightly slow, but the country is not moving towards economic recession. Everyone should be rest assured. The employment rate is still the highest. And investors are also investing a lot in the economy.
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