In June, American employers demonstrated the U.S. economy’s robust nature by adding 206,000 jobs, indicating its resilience against persistently high interest rates. While this number shows a slight decrease from May’s 218,000, it still represents solid job growth, underscoring the steady, consumer-driven nature of the American economy despite a gradual slowdown.
The Labor Department’s report released on Friday also revealed a slight uptick in the unemployment rate from 4% to 4.1%. Additionally, the department significantly revised its earlier estimates of job growth for April and May, reducing them by a total of 111,000 jobs.
The economic landscape is becoming a critical issue for voters as the presidential campaign heats up. Despite consistent hiring, low layoffs, and slowly cooling inflation, many Americans remain frustrated by the high cost of living and hold President Joe Biden responsible for these economic pressures.
Economists have repeatedly anticipated a slowdown in the job market due to the Federal Reserve’s high interest rates. Nevertheless, hiring has continued to surpass expectations. There are, however, indications of a broader economic deceleration in response to the Fed’s rate hikes. The U.S. gross domestic product (GDP), which measures the total output of goods and services, grew at a sluggish annual rate of 1.4% from January to March, marking the slowest quarterly growth in nearly two years.
