大象传媒

US economy adds more jobs than expected in June

  • Published
US workerImage source, Getty Images

The US economy created 372,000 jobs in June, according to official figures, with employment growing by far more than forecast.

Economists had expected the country to add between 250,000 and 295,000 roles.

The unemployment rate also remained close to record lows, according to the US Bureau of Labor Statistics.

The strong jobs figures are being seen by some analysts as a sign that more US interest rate rises could be on the way.

Seema Shah, chief global strategist at Principal Global Investors, said: "Today's job number should soothe fears of an imminent recession, but it does nothing to relieve fears of considerable further Fed tightening.

"The job market remains severely tight, suggesting still-intense wage pressures."

The unemployment rate stayed at 3.6% in June for the fourth month in a row.

Like other countries, the cost of living in the US is soaring due to rising food and energy prices. Inflation hit a 40-year high of 8.6% in the year to April and the US Federal Reserve has been increasing borrowing costs to try to cool the rate of price growth.

Last month, the Fed announced its biggest interest rate rise in nearly 30 years, increasing its key interest rate by three quarters of a percentage point to a range of 1.5% to 1.75%.

In the first three months of the year the US economy contracted at an annual pace of 1.6%, and Fed chairman Jay Powell recently admitted to lawmakers that a recession is "a possibility".

Richard Flynn, managing director at Charles Schwab UK, said the "strong jobs report contrasts with other recent economic announcements".

"The US economy and the stock market have both struggled in the first half of 2022, in the face of risks that include a multi-decade high in inflation, aggressive monetary policy tightening, and the effects of Russia's invasion of Ukraine, " he said.

"However, jobs reports are lagging economic indicators that are often strong entering a downturn."