US Job Growth Slows as Higher Interest Rates Impact Economy The latest data from the Labor Department reveals that US job growth in June was lower than anticipated, signaling the potential effects of higher interest rates on the world’s largest economy.
With an increase of 209,000 jobs, it marks the smallest gain in over two years. However, the unemployment rate dropped to 3.6% from May’s 3.7%.
The Federal Reserve’s efforts to combat inflation through raised borrowing costs have not deterred hiring, but other indicators, such as a decline in job vacancies, suggest a possible cooling of the labor market.
Despite the slowdown, wages continued to rise, showing a 4.4% increase from the previous year. The report prompts expectations of another interest rate hike by the US central bank.
