The U.S. job market showed signs of moderation in June, according to data released Friday by the Bureau of Labor Statistics (BLS). The economy added 206,000 nonfarm jobs last month, falling short of analyst expectations of 190,000 new positions. This represents a significant decrease from the robust gains of 272,000 jobs added in May.
The unemployment rate also saw a slight increase, rising to 4.1% in June compared to 4.0% in May.
While these figures indicate a cooling job market, they remain positive overall. Economists had anticipated a more modest increase in employment. The strong job growth seen in recent months has bolstered arguments from some economic leaders, like Federal Reserve Chair Jerome Powell, who refute concerns about a stalling economy despite sluggish growth and high inflation.
Read: Florida Jobless Claims Dip Despite Economic Concerns
“There are signs that suggest labor conditions are softening, including job openings falling to more than a three-year low, temporary employment declining 25 of the past 26 months, the unemployment rate rising to 4.0% from 3.4% last April, and growth in part-time employment continuing to outpace full-time employment,” Sam Bullard, managing director and senior economist at Wells Fargo’s corporate and investment banking unit, told U.S. News and World Report ahead of the Friday release.
Inflation has raised prices by more than 20% since President Joe Biden took office in January 2021, while the consumer price index increased 3.3% annually in May.
In response to persistently elevated inflation, the Fed decided to hold off cutting its federal funds rate at its June meeting, keeping it in a range of 5.25% and 5.50%. This has increased the cost of credit in an attempt to slow the economy.
Read: Iowa Sen. Grassley Demands Accountability As CISA Suffers Alarming Cybersecurity Breach
According to the most recent estimate by the Bureau of Economic Analysis, real gross domestic product (GDP) increased at an annual rate of 1.4% in the first quarter of 2024, down from the 3.4% increase in the fourth quarter of 2023.
The slowdown in the first quarter compared to the previous quarter was due to less growth in consumer spending, exports, and state and local government spending.
Nearly half of surveyed Americans currently view the economy as being in poor condition, and nearly 70% say the economy is worsening, according to a poll conducted by Gallup from June 3 to 23. Almost 60% of surveyed voters disapprove of Biden’s handling of the economy, according to an average of polls collected by RealClearPolitics polling that were conducted between May 30 and July 2.
Help support the Tampa Free Press by making any small donation by clicking here.
Android Users, Click To Download The Tampa Free Press App And Never Miss A Story. Follow Us On Facebook and Twitter. Sign up for our free newsletter.