The U.S. economy appears to be cooling but job growth remains strong, and unemployment is still relatively low.
U.S. employers added 209,000 jobs in June, compared to 306,000 in May, the U.S. Bureau of Labor Statistics reported Friday; it was the 30th consecutive month of gains in American payrolls. Employment continued to trend up in government, health care, social assistance, and construction. Nonfarm employment has grown by an average of 278,000 per month over the first six months of 2023, the BLS said.
Nationwide, the unemployment rate was calculated at 3.6% in June, compared to 3.7% in May. The U.S. rate of joblessness has ranged from 3.4% to 3.7% for 15 months, since March 2022, the BLS reported.
Oklahoma’s unemployment rate was 2.8% in May, according to the U.S. Department of Labor.
First-time unemployment claims filed in Oklahoma during the week that ended July 1 totaled 1,442, an increase of 174 from the previous week’s 1,268, the DOL reported. Continuing claims for unemployment benefits in the week ending July 1 totaled 10,250, compared to 10,274 the previous week, the DOL said.
The number of Americans out of work, at 6.0 million, changed little in June. The 1.1 million long-term unemployed (those who have been without a job for 27 weeks or more) changed little in June and accounted for 18.5% of the total unemployed.
Nationally, the labor force participation rate in June was 62.6% for the fourth consecutive month. In Oklahoma, the labor force participation rate was 61.3% in May, according to the BLS.
The total number of nonfarm employees in Oklahoma in May was reported at 1,727,900.
The percentage of people aged 25 to 54 across the nation who are working or are looking for a job increased to 83.5% – its highest level in 21 years, since May 2002.
The number of persons employed part time for economic reasons increased by 452,000 to 4.2 million in June, partially reflecting an increase in the number of individuals whose hours were cut due to slack work or business conditions.
Nationwide, there were 9.8 million job openings in May, down from 10.3 million in April, according to the Job Openings and Labor Turnover Survey. Fewer workers are quitting their jobs now than were doing so last year at the height of what was called the “great resignation.”
Policymakers at the nation’s central bank, the Federal Reserve, are concerned about the strength of the labor market as they continue to wrestle inflation.
At its June meeting the Fed chose to leave interest rates unchanged (at 5.00% to 5.25%) after 10 consecutive increases. The JOLTS report is one of several factors that will affect the Fed’s next decision on interest rates.
The Federal Reserve target is a 2% inflation rate. Inflation stood at 4.05% on May 31, according to Y Charts of Chicago, Illinois.