Source: Fortune
Summary
The US job market showed resilience in June despite economic shocks from the Iran conflict and the closure of the Strait of Hormuz. Job openings fell slightly to 7.36 million, while layoffs remained steady at 1.8 million. Hiring was weaker than in the post-pandemic jobs boom, but the labor market has remained sturdy despite a surge in energy prices. The economy has added an average of 92,000 jobs a month this year, up from fewer than 10,000 a month last year.
Our Reading
The numbers tell one story. Despite the economic shocks, the US job market has shown resilience, with job openings falling only slightly. The announcement sounds familiar, as the labor market has remained sturdy despite a surge in energy prices. The strategy enters a familiar phase, as companies and government agencies continue to add jobs, albeit at a slower pace than in the post-pandemic jobs boom. The economy doesn’t need as many new jobs as it once did to keep the unemployment rate from rising, with some economists believing the “break-even” rate could be nearly as low as zero jobs.
The economy is adapting to the new normal, with companies and government agencies adding jobs at a slower pace, but still adding jobs nonetheless. The labor market is showing resilience, but the pace of hiring is weaker than in the post-pandemic jobs boom.
Author: Evan Null
