US unemployment rate at highest level since October 2021
According to the website "MarketWatch", analysts had expected 185,000 new jobs and an unchanged unemployment rate of 4.1 percent. In June, 179,000 new jobs were created, with the originally reported figure of 206,000 new jobs revised downwards.
The economic situation plays a significant role in the campaign for the U.S. presidential election in November. It is likely that Vice President Kamala Harris will run for the Democrats against former Republican President Donald Trump.
Overall, the U.S. labor market has recovered well from the effects of the COVID-19 pandemic, with the unemployment rate peaking at 13.0 percent in the second quarter of 2020. For over three years, there has been a shortage of workers, leading many companies to raise wages to enhance the attractiveness of jobs. However, wage increases have also contributed to inflation.
The head of the U.S. Federal Reserve, Jerome Powell, said on Wednesday that the situation now seems to be balancing out. Wage increases have slowed, and the labor market situation is as "solid" as it was before the pandemic.
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The U.S. presidential election campaign this November is heavily influenced by the country's economic situation. Vice President Kamala Harris, representing the Democrats, is expected to challenge former Republican President Donald Trump.
Despite the ongoing challenges with inflation, the recovery of the U.S. labor market from the COVID-19 pandemic, as overseen by the Federal Reserve under Jerome Powell, has been noteworthy, with the United States regaining a significant number of jobs.
