US Economy, Remains Resilient Despite , Interest Rate Hikes.
Associated Press reports that while the job market has cooled, it continues to defy predictions that skyrocketing interest rates would trigger a recession.
In July, employers in the U.S. added approximately 187,000 jobs, while the unemployment rate dropped 3.5%.
AP reports that the number is still less than the 200,000 new jobs economists had expected to see added in July.
.
Since March of 2022, the Federal Reserve has raised interest rates 11 times.
.
This is a good strong report, Julia Pollak, Chief economist at the jobs website ZipRecruiter, via Associated Press.
The worst fears that people had of a painful downturn, a loss of jobs, longer unemployment durations, all those things — those are not coming to pass, Julia Pollak, Chief economist at the jobs website ZipRecruiter, via Associated Press.
Meanwhile, unemployment fell just short of a half-century low as 152,000 workers entered the U.S. job market.
.
Regardless of the influx of new employees, average hourly wages increased 0.4% from June and a 4.4% increase from the same time last year.
AP reports that those higher-than-expected numbers are likely to worry the Fed.
In both May and June, the Labor Department revised payroll figures down, reducing the number of new jobs created by 49,000 each month.
.
In both May and June, the Labor Department revised payroll figures down, reducing the number of new jobs created by 49,000 each month.
.
Paul Ashworth, chief North America economist at Capital Economics, June and July were “the two weakest monthly gains in two-and-a-half years."
