US nonfarm payrolls post steepest gains since March 2020 as employers raise wages

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US nonfarm payrolls post steepest gains since March 2020 as employers raise wages

On Friday, US Labour Department’s closely monitored employment data had revealed that US businesses had hired the highest number of employees in more than ten months in June, while employers had raised average hourly wage by 0.3 per cent, however, unemployment rate ticked up to 5.9 per cent from 5.8 per cent a month earlier.

Nevertheless, several analysts were quoted saying following Friday’s job data that the stinging signs of labour shortage casting glooms over a robust economic recovery might be eased off, as US President Joe Biden says shortly after the employment data that the US economy is ‘on the move.’

Non-farm payrolls hit 10-month peak in June

Aside from that, the Labour Department’s survey had unfurled that nonfarm payrolls rose by 850,000 jobs last month, while about 151,000 people had entered into the labour market last month, remarking a tentative sign that a long-lasting gloom over the US labour market might have been swaying away, however, overall employment has been 6.8 million jobs below its February 2020 peak.

On top of that, as an acceleration in vaccination drive had prompted pandemic-wary Americans to step outside and begin to spend on in-house restaurants and travels, the leisure and hospitality industry had added 343,000 jobs last month, representing more than a 40 per cent of entire job gains.

Aside from that, Friday’s data had also unenveloped that US employers had heightened up average hourly wages by 0.3 per cent in a bid to entice millions of Americans to join the workforce. Meanwhile, referring to a modest recovery in US labour market, a senior economist at Wells Fargo in Charlotte, North Carolina, Sarah House said, “While businesses are still having a hard time filling positions, staffing challenges do not seem quite as dire based on today's pickup in payrolls”.