June Jobs report suggests recession isn’t imminent and Fed’s policy isn’t showing results yet

from The Gray Area:
A summary of the June Jobs report from various sources: U.S. stocks lost ground after news that the economy added 372,000 jobs in June, extending a streak of strong gains despite signs of slowing economic growth. This suggests recession isn’t imminent, but also shows the Fed’s policy isn’t yet having the desired effect on inflation. That means more and harder tightening lies ahead. Treasury Yields Rise After Jobs Report Education and health services led job creation, followed by professional and business services and leisure and hospitality. The unemployment rate remained at 3.6% and near the half-century low reached before the pandemic hit in spring 2020. Wages are up 5.1%, lagging well behind inflation at 8.6% Economists surveyed by The Wall Street Journal had forecasted that employers added 250,000 jobs last month and the unemployment rate would stay at 3.6%. The Fed Can’t Print More Workers. Job growth is strong but decelerating, as you would expect with such a tight labor market. Employers can’t hire workers who don’t exist. At the end of May, there were 11.3 million job vacancies, the government reported this week. Prior to the pandemic, the highest number of openings picked up by the government’s Job Opening and Labor Turnover Survey was 7.4 million in 2019. The record high was from March of this year, at 11.9 million. With the May figure, there were around 1.9 jobs for every unemployed person—close to the record high. Today's data will keep the Federal Reserve on track to raise interest rates by 0.75 percentage point at its meeting later this month. More From Wall Street Journal: More From CNBC: More From Brietbart:

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