The Bureau of Labor Statistics (BLS) released June’s employment stats with 206,000 non-farm jobs being added to the economy last month, beating economists’ expectations of 200,000. BLS also revised May’s numbers down from a surprising 272,000 to 218,000, which caused the unemployment rate to tick up slightly to 4.1 percent. The bulk of the jobs added were again in government (70,000) and health care (48,000), while leisure and hospitality was steady at about 7,000 jobs.
This report, according to many economists, is good news that the job market is stabilizing and slowing slightly, which could lead to a much-wanted interest rate cut by the Federal Reserve, possibly as early as September, although Federal Reserve Chair Jerome Powell did not indicate that a cut was on the horizon anytime soon. The Fed has been carefully monitoring the US economy to hit a goal of 2 percent year-over-year inflation, which has yet to be obtained.
However, the National Federation of Independent Business (NFIB) says that small businesses are still struggling to hire, despite raising compensation. According to the association, “a seasonally adjusted 37 percent of all small business owners reported job openings they could not fill in their current period, down five points from May.”
Unsurprisingly, transportation represented a sector where unfilled job openings were among the highest.
“This summer, small business owners continue to try to hire and find qualified employees for their open positions,” said NFIB Chief Economist Bill Dunkelberg. “The number of small businesses with one or more job openings they can’t fill remains at exceptionally high levels. However, owners are raising compensation at historically high levels to attract and retain employees.”
The full report can be viewed here.
Visit nfib.com for more information.
[07.09.24]