US employers pulled back on hiring last month, adding only 57,000 jobs, less than half the previous month’s total. This slowdown is a sign that companies still have a cautious economic outlook.
Economic Outlook
The Labor Department reported that the unemployment rate declined to a low 4.2% from 4.3% in May, mostly due to many people out of work giving up looking and no longer being counted as unemployed.
The economy is growing modestly despite ongoing challenges, expanding at a 2.1% annual pace in the first three months of the year. However, some forecasts expect it to slow in the April-June quarter.
Inflation is at a three-year high of 4.2%, lifted by spiking gas prices, eroding Americans’ incomes. The inflation-fighters at the Federal Reserve are under pressure to raise rates to slow the economy and combat inflationary pressures.
Historically, average job gains of 188,000 a month wouldn’t be seen as strong. Yet, as more Americans retire and new immigration has dropped sharply, the US workforce is barely growing.
Original reporting: Dallas TX News (HLL/CB) — read the source article.
