BLITZ BUREAU
THE June 2024 Employment Situation report from the Bureau of Labor Statistics says that the American economy added 206,000 jobs last month while the unemployment rate was at 4.1 percent.
Along with what the Acting Secretary of Labor Julie Su referred to as the unemployment rate remaining low, the prime-age labour force participation rate hit a 22-year high. “This strong jobs report demonstrates another month of steady, stable economic growth,” the Acting Secretary stated.
“Employment gains were widespread across industries, with notable growth in health care, social assistance, construction and local government. Increased employment in these sectors is not only meaningful for workers and their families, but these jobs will improve the lives of all Americans as cities and towns hire more first responders, firefighters, librarians and other city workers,” the July 5 statement on the June 2024 Employment Situation noted.
Following the release of the report, some media platforms have, however, sounded a note of caution.
Goldilocks labour market
“Friday’s employment report, which showed the number of new hires fell to 206,000 last month from 218,000 in May, while the unemployment rate rose to 4.1% from 4%, demonstrates we could be getting closer to a “Goldilocks” labor market — neither too hot nor too cold,” according to a post on CNN website.
Goldilocks economy is not too hot nor too cold but just right. The term, from the popular children’s story ‘Goldilocks and the Three Bears’, describes an ideal state for an economic system. According to the website, it’s been a double-edged sword, since it has fueled higher prices, given that workers had more money to spend. It reported that wage growth has slowed steadily over the past several months.
Soft patch
“On the surface, the US employment report for June looked pretty good. Some 206,000 jobs were added, which exceeded the 190,000 median estimate of more than five dozen economists surveyed by Bloomberg. Also, wage growth continued to moderate, easing concern that fast-rising earnings would underpin inflation. But peel back the curtains and you can clearly see why so many are worried the soft patch that the economy seems to have run into may get even softer — or worse,” said MoneyControl in the beginning of a detailed analysis on July 8.
Presidential election will be held on November 5 in the United States where incumbent Joe Biden is running for re-election. He is facing a strong challenge from his predecessor, Donald Trump.
