Even as employers in the US stepped up the recruitment in June 2019, 224,000 US Jobs were added in this month. This indicates the durability of the nation’s economy after even a decade of growth.
The figures for US jobs for the month of June were announced by the Government last Friday. This can create difficulties for the Federal Reserve this month regarding interest rates cut for supporting the economy. Majority of the investors in the US anticipate cut in rates in July. They also look forward to 1 or 2 extra cuts by the Feds later in the year.
However, the probability for rates cit is lesser now, as quoted by the CTV News CA.
On Friday, the stocks sold off before time prior to paring their losses. In the late afternoon trading, Dow Jones Industrial Average declined by around 20 points. However, the 10-year note by the US Treasury increased to 2.05% from a little less than 2% prior to the US Jobs report. This reflected the opinion that the Fed can announce a lesser hike of rates.
The solid growth of jobs in June was preceded by a moderate gain in May with 72,000 jobs. The result had raised concerns regarding the health of the US economy.
However, with the pace of recruitment in June, the employers have now on an average added a concrete 171,000 jobs for the last 3 months. The burst of recruitment in June indicates that several employers have discarded worries over weaker growth. It also includes declining benefits from tax cuts in the US and trade wars by President Donald Trump.
PNC Financial Services Chief Economist Gus Faucher said that there are drags on the economy in 2019. However, the expansion must remain all around the year, he added. The gloom and doom were perhaps blown out of proportions, said Faucher.
The rate of unemployment reached 3.7% in June and was 3.6% in the last 2 months. This reflects the arrival of individuals looking for jobs who were counted initially as jobless. The average wages per hour increased by 3.1% from one year earlier.
Trump in his response the report for US jobs tweeted ‘Jobs, Jobs, Jobs! However, the strong growths of jobs have lessened the likelihood of slashing rates by Feds, at least as of now. Trump has frequently and assertively demanded the Feds to do so.
Asserting to the reporters on Friday, Trump said that we would be like a rocket ship if we had a Feds that would lessen rates of interest.
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