America’s employers added 206,000 jobs in June, displaying the economy’s ability to withstand high interest rates. While job growth was slightly down from May, the economy is still growing steadily. The unemployment rate increased slightly to 4.1%, but it remains low.
Despite the consistent hiring and low layoffs, high prices are frustrating many Americans, leading some to blame President Joe Biden. Economists have been surprised by the strength of hiring gains despite high interest rates set by the Federal Reserve. However, there are signs of economic slowdown, with GDP growing at a slow pace and consumer spending increasing at a lower rate.
Though job openings have declined since a peak in March 2022, workers are experiencing a higher level of job security as employers are not cutting jobs aggressively. The Fed raised interest rates 11 times to combat inflation, but the economy has shown resilience and avoided a recession. Inflation has also decreased from a peak in 2022 to 3.3%, with Fed Chair Jerome Powell indicating that prices are slowing.
As the presidential campaign intensifies, the economy remains a key issue for voters. Despite challenges, the job market is still strong, indicating a level of stability. The economy’s ability to weather high interest rates and inflation pressures is a positive sign, but concerns about economic growth remain.
Source
Photo credit www.bostonherald.com