Data showed the U.S. economy added 850,000 jobs in June

32
U.s. United states economy and Retail sales

The long-awaited data was published on July 2, which revealed that the United States economy added 850,000 jobs in June as the pace of the recovery rose. Remarkably, it quieted simmering fears of more lasting harm from labor and supply shortages.

The unemployment rate changed little, increasing to 5.9% from 5.8%.

The news is a good sign for the economy more than one year into the pandemic.

According to an economist at the Washington Center for Equitable Growth, Kate Bahn, it’s a pretty strong report. Bahn added that the job growth was in the industries that had been so hard hit. She announced that there are signs that we’re growing back to pre-pandemic levels.

Employment increased in the leisure and hospitality sector. Among the additional 343,000 jobs, more than half are in restaurants and bars. Additionally, hotels and other accommodations and arts, entertainment, and recreation entities added nearly 75,000 jobs.

Meanwhile, in local education, employment rose by 155,000.

Retail added 67,000 jobs, with strong growth in clothing and merchandise stores.

Average earnings surged 10 cents for all employees to $30.40 an hour, following larger gains in May and April. According to the Bureau of Labor Statistics, the wage increases reflect boosted demand for labor at this stage of the recovery.

Report surpasses analysts’ estimates about the addition of 700,000 jobs

Republicans had tried to seize on those reports to suggest that the president’s economic plan was falling short.

However, June’s report blew through projections, surpassing analysts’ estimates about the addition of 700,000. However, the economy is still down 6.8 million jobs from where it was in February 2020.

Air travel has risen significantly in the last months, and the Fourth of July weekend is likely to continue the trend. According to an estimate by AAA, travel for a holiday is likely to grow by 40% compared to 2020 and nearly reach pre-pandemic levels, with an estimated 47.7 million individuals traveling.

Moreover, consumer spending on services like restaurants, entertainment, and transportation has been rising in the last months.

Republicans have started using the employment report as a cudgel to criticize President Biden’s plan. However, their predictions about a month of disappointing growth did not pan out.

Minutes after the publishing of the jobs report, a senior Biden adviser wrote on Twitter that the report was a sign that Joe Biden’s economic plans were working.

  • Support
  • Platform
  • Spreads
  • Trading Instument

For more news updates, visit our homepage now and see our latest news article. Want to learn more about trading? Visit our education page now and learn for FREE!

Tags:

Leave a Reply

Sending