The U.S. labor market remains tight, with an addition of 372,000 jobs in June, according to the Bureau of Labor Statistics. In addition, the unemployment rate held steady at 3.6 percent for the fourth consecutive month. Total nonfarm payroll employment in April and May was revised down to 368,000 and 384,000, respectively.
Overall, employment is 0.3 percent below its pre-pandemic level in February 2020. Private-sector employment has recovered to exceed its pre-pandemic level, while government employment is 664,000 jobs lower than in February 2020.
It is likely that the continued job growth will give the Federal Open Market Committee some breathing space, allowing it to focus on curbing inflation with additional tightening.
By employment category, the strongest growth was in professional and business services, with a gain of 74