U.S. nonfarm payrolls report shows job market remains resilient
July 5th, according to the Wall Street Journal, the U.S. Department of Labor reported on Friday that the United States added 206,000 jobs last month. The unemployment rate rose to 4.1%. Although the Federal Reserve has kept interest rates at their highest level in more than two decades, the report shows that the resilience of the labor market remains. The report shows that U.S. hiring has slowed and the labor market appears to have reached a better balance. The unemployment rate has risen from the multi-decade low of 3.4% hit at the beginning of last year. Average hourly earnings rose 3.9% year-on-year in June, the smallest increase since 2021. Federal Reserve officials are no longer so worried about the overheating of the job market and expect to cut interest rates later this year as long as inflation does not break out, but the still strong job growth does make them feel that they can be more patient before cutting interest rates.