From 4.1% in June to 4.3% in July, the US jobless rate increased. The current rate of unemployment is the highest since October 2021, when it reached 4.5%. The unemployment rate increased for the fourth consecutive month in this period, indicating a cooling of the US labour market following an extraordinary period spanning several years.
There are worries that the US economy has slowed down too quickly and could enter a recession after the labour market in the country dramatically underperformed expectations last month.
According to figures released on Friday by the Bureau of Labour Statistics, businesses added barely 114,000 positions in July, and the unemployment rate increased from 4.1% to 4.3%.
Aside from the economic decline, job prospects are progressively vanishing in the US, and hiring has slowed to its lowest level in ten years. This is causing more employees to cling to their current positions. The good news is that it doesn’t seem like those positions will soon be eliminated. This is supported by data from the most recent Job Openings and Labour Turnover Survey, which was released on Tuesday. It showed that hiring activity fell, layoffs were infrequent, the number of people quitting their jobs reached a three-year low, and the number of open positions dipped slightly in June.
Salary and benefit increases in the second quarter came in at a slower rate than anticipated, rising by just 0.9%, the lowest quarterly rate in the last three years, according to new data from the Employment Cost Index released on Wednesday. Compensation costs also decreased annually, to 4.1%.
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