U.S. Job Growth Slows Amid Rising Unemployment and Wage Moderation
U.S. job growth slowed in June as unemployment hit a 2-1/2-year high of 4.1%, signaling easing labor market conditions. This aligns with the Federal Reserve's trajectory to cut interest rates. The job market saw significant downward revisions for April and May, while wage gains remained modest.
![U.S. Job Growth Slows Amid Rising Unemployment and Wage Moderation](https://devdiscourse.blob.core.windows.net/aiimagegallery/05_07_2024_12_38_27_2085898.png)
In June, U.S. job growth decelerated, with the unemployment rate climbing to a 2-1/2-year high of 4.1%, suggesting a cooling labor market. This trend compels the Federal Reserve to consider reducing interest rates somewhat imminently.
Friday's employment report from the Labor Department revealed that 111,000 fewer jobs were created in April and June than initially reported. Additionally, the expansion in the labor force was largely responsible for the increase in the unemployment rate, which rose from 4.0% in May, marking its highest level since November 2021.
This updated data points to a moderation in wage growth and affirms the return of a disinflationary trend. As a result, financial markets anticipate that the U.S. central bank may inaugurate its easing cycle in September, following aggressive tightening in 2022 and 2023.
(Disclaimer: With inputs from agencies.)
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