Employment opportunities in the United States fell in June to their lowest level in more than two years, but remained at levels consistent with market conditions, despite the large interest rate hikes approved by the Federal Reserve to curb demand.
In its monthly report on job opportunities and labor turnover, released on Tuesday, the Ministry of Labor said job opportunities, a measure of labor demand, fell by 34,000 to 9.582 million on the last day of June, the lowest level since April 2021.
Economists polled by Reuters had expected 9.610 million jobs in June.
American industry is suffering from a contraction
The US manufacturing sector contracted in activity for the ninth consecutive month in July, as demand fell while companies cut production and the number of employees, survey data showed Tuesday.
The manufacturing index, released by the Institute for Supply Management (ISM), came in at 46.4 percent last month, up from 46.0 percent in June, indicating a slower rate of contraction, but still below the 50 percent threshold that was set. indicate growth.
“Demand remains weak, but marginally better than in June, production slowed due to a lack of work, and suppliers still have capacity,” said Timothy Fury, head of surveys at the Institute for Supply Management.
He added, “There are indications of further employment reduction measures in the near term to better match production.”
This comes as demand for commodities was hit by a shift in consumption towards services, while the Federal Reserve’s tightening of monetary policy affected spending.
In order to rein in soaring inflation last year, the US central bank raised interest rates to ease demand, and its actions are reverberating in the world’s largest economy.
The Institute for Supply Management report for July showed that the new orders and production indices improved slightly, but remained in contraction, while employment declined further.
The institute stated that two industries, which are petroleum and coal products, as well as furniture and related products, recorded growth in July, while 16 other industries contracted.
“Sales in our industry are very slow in the second half of the year, and an improvement is not expected until at least the fourth quarter,” said a respondent from the chemical products sector.
Another respondent noted that semiconductor trade restrictions imposed on China have “negatively impacted” manufacturing business in North America.
Meanwhile, economists from the Pantheon of Macroeconomics said in a recent report that “the widely expected rush to reopen China has achieved very little.”
“Overall, we see few signs of improvement on the horizon,” they added.
2023-08-01 23:58:01
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