In June, the US economy added more jobs than anticipated

According to official statistics, the US economy created 372,000 new jobs in June.

In June, the US economy added more jobs than anticipated

According to official statistics, the US economy created 372,000 new jobs in June. Employment growth was much higher than expected.

Economists expected that the country would add between 250,000-295,000 jobs.

According to the US Bureau of Labor Statistics, the unemployment rate also remains close to record lows.

Analysts see the strong job figures as a sign of increased US interest rates.

Principal Global Investors' chief global strategist Seema Shah stated that while the current job count should calm fears of an impending recession, it doesn't alleviate fears of Fed tightening.

"The job market is still extremely tight, which suggests that wage pressures are still intense."

For the fourth consecutive month, June saw a 3.6% unemployment rate.

The rising cost of living in America is similar to other countries. This is due to the increasing costs of food and energy. The inflation rate reached a record 8.6% in April, a new 40-year high. To slow the pace of price growth, the US Federal Reserve increased borrowing costs.

The Fed announced last month its largest interest rate increase in almost 30 years. It increased its key rate by three quarters of an percentage point to 1.5% to 1.75%.

The US economy contracted by 1.6% in the first three months of this year. Fed Chairman Jay Powell admitted recently to Congress that a recession was "possible".

Charles Schwab UK managing director Richard Flynn said that the "strong jobs report contrasts other recent economic announcements".

He stated that the US economy and stock market both suffered in the first half 2022 in the face risks such as a multi-decade-high inflation rate, tightening monetary policy, and the impact of Russia's invasion.

"However, the weakest indicators of economic strength entering a downturn are jobs reports."