Associated Press (07/08/22) Rugaber, Christopher

The June hiring report has eased concerns of an impending recession in the U.S. economy, indicating a healthy labor market. However, the data also underscores a significant divergence between the labor market’s strength and other economic indicators, suggesting a critical juncture for the economy. While robust hiring and wage growth could bolster economic resilience, inflation and rising borrowing rates orchestrated by the Federal Reserve pose risks to consumer and business spending, potentially hampering growth and leading to cutbacks in hiring. Despite expectations of a slowdown, job growth in June remained unexpectedly robust, signaling ongoing demand for labor. Additionally, the unemployment rate, unchanged, continues to mirror pre-pandemic lows, highlighting the labor market’s resilience amidst broader economic challenges.

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