U.S. job growth is expected to pick up
As the world’s largest economy continues to recover from the impact of Covid-19, and recruitment catches up with the relentless demand for workers, employment growth in the United States will accelerate in June.
According to consensus forecasts compiled by Bloomberg, it is expected that employers across the country will increase by 720,000 jobs in June, exceeding the 559,000 jobs announced in May, which is lower than expected. The unemployment rate is also expected to decline slightly, from 5.8% last month to 5.6%.
The US Bureau of Labor Statistics will release the data at 8:30 am Eastern Daylight Time on Friday, which coincides with a critical moment in Eastern Time. U.S. economy.
Relaxed lockdown measures and generous government stimulus plans have contributed to Strong rebound Economic growth this year.U.S. consumer prices in turn Soar Due to supply chain constraints, some companies are hindering the ability to meet the hot consumer demand.
Severe labor shortages also hinder employers, as childcare restrictions and fear of contracting Covid prevent people from returning to the labor market.Some companies blame Unemployment benefits hindered employment recovery, prompting several Republican-leaning states in the United States to cut aid.
The company has started to raise wages and Issue Benefits for attracting new employees. Friday’s report will show whether these measures can help balance labor market mismatches.
Economists surveyed by Bloomberg predict that the labor force participation rate, which tracks the number of Americans employed or looking for work, will remain near the current level of 61.6%. At the same time, the average hourly income will increase by 0.3% from the previous month and 3.6% year-on-year.
Despite the expected growth in June, US employment is still far from the pre-pandemic level. There were still 9.3 million unemployed in May, compared with 5.7 million in February 2020.
A strong employment report will help support a group of U.S. central bank governors’ view that the Fed should begin to consider withdrawing its monetary policy support because it is close to achieving an average 2% inflation rate and achieving full employment.This has always been the threshold Any adjustments The Federal Reserve’s $120 billion monthly asset purchase program.
Instead, Federal Reserve Chairman Jay Powell and other members of the Federal Open Market Committee urged patience– information Last month, after the U.S. Central Bank announced a “dot plot” of its personal interest rate forecast, they tried to fight back, indicating that its stance may be more hawkish than many expected.
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