The creation of new jobs in June has represented an exponential leap in the United States, with a record of 224,000 fresh jobs that represents numerically almost the same population of Norfolk, Virginia.
The Union’s economy grew in the face of expectations during the sixth month of the year and is close to showing equilibrium by being one tenth above the unemployment rate that reached 3.7% at the end of the first half of the year.
The government report arrives as a relief for the authorities who saw with concern that the employment rate in May showed a slowdown to 75 thousand jobs, a fact that causes concern about what appeared to be a global market weakening.
Washington is surely pleased because the country’s economy continues at a level close to full employment. For the White House, the creation of 224,000 new jobs demonstrates the recovery of a level above the expectations of the analysts, who had anticipated around 170,000.
But, as it has been pointed out, the counterweight to the celebration is the unemployment rate, which rose slightly – one tenth – to 3.7% in June, although it remains at a very healthy level and close to full employment.
Many economists warn that the contrast between the two variables is normal. Sometimes an increase in the unemployment rate can be registered when the creation of jobs grows, because more people who before neither worked nor actively sought employment, decided to be a part of the labor market encouraged by the improvement of the economic situation.
As interesting data, the government report shows that the average wage rose in June by 6 cents an hour, to 27.90 dollars. It is important to note that in the last 12 months, wages have increased by 3.1%, the same level as last month.
Likewise, the labor force participation rate, the proportion of Americans who are employed or looking for work, improved slightly to 62.9%, a tenth above May.
This has been the 105th month of consecutive employment growth in the U.S., the longest growing streak in the labor market on record.
However, the Federal Reserve (Fed) has reiterated that it will be “patient” with future interest rate hikes during the year. Currently it is situated between 2.25% and 2.50%.
Translated by: José Espinoza