Unemployment rate stable in the United States

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Unemployment rate stable in the United States

The unemployment rate and the number of unemployed are close to their February 2020 level, just before the COVID-19 pandemic.

The U.S. labor market surprised Friday with much more job creation than expected in June, according to Labor Department data .

In June, 372,000 jobs were created. This is well above the 250,000 that had been projected by analysts and only slightly below the 384,000 recorded in May after a slight downward revision.

Notable gains were recorded in the professional services, leisure and hospitality sector as well as in health care, the ministry detailed.

The rate of unemployment remained stable at 3.6% for the fourth month in a row.

A total of 5.9 million people were unemployed in June, a number virtually unchanged, the ministry also notes.

The unemployment rate and the number of unemployed are thus close to their February 2020 level, i.e. just before the spread of the COVID-19 pandemic (3.5% and 5.7 million, respectively) which had caused a shock unprecedented in the US job market.

On the other hand, the employment participation rate (62.2%) remained lower last month at its pre-pandemic level (63.4%).

On the other hand, average hourly earnings increased by 0.3%, similar to the previous month. Over the past 12 months, average hourly earnings have climbed 5.1%, a high level, but insufficient to offset the level of inflation (+8.6% in May).

< p class="e-p">Since the spring of 2021, employers, facing labor shortages and mass quits each month (another 4.3 million in May), have been hesitant to lay off workers and offer on the contrary, improved salary conditions to retain their employees and make new recruitments.

Economists expect a slowdown in employment in the second half of the year.

In recent weeks, major companies in the technology sectors have announced layoffs, including Netflix, or signaled that they are abandoning their hiring plans.

But for now, job vacancies globally remain at a record high (11.3 million in May), according to data released this week. ined by the Bureau of Statistics.

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