07 July 2023
If you are covering the latest US employment statistics, please see the following comment from Richard Carter, head of fixed interest research at Quilter Cheviot:
“Despite choppy waters in the US economy at the moment, the jobs market remains on an even keel. The unemployment rate dipped slightly to 3.6% following the rise in May, and while jobs growth in the US slowed somewhat in June with 209,000 jobs added compared to 339,000 in May, this is unlikely to deter the Federal Reserve from marching ahead with a rate hike at its monetary policy meeting later this month.
“Employment in the US has been stronger than many had expected which has resulted in consumers being better able to withstand the pressures of high inflation and the Fed’s aggressive hiking cycle. Next week’s inflation figures will paint a clearer picture of the Fed’s next steps, but today’s figures suggest that not only will it hike rates later this month, but it may have to go even further than it would have hoped in the coming months if the labour market does not begin to show signs of weakening.”
