The unemployment rate rose slightly, but employment increased by more than 200,000. (iStock)
The U.S. job market is gradually stabilizing, as evidenced by the addition of 206,000 jobs in June. According to the Bureau of Labor StatisticsIndustries driving this growth include government, healthcare, social assistance and construction.
Despite the increase in employment, the unemployment rate rose slightly to 4.1%. This was a minimal month-to-month increase, as last month’s unemployment rate was 4%. The current unemployment rate is higher than last year, when the unemployment rate was 3.6%.
Government hiring led the way in job growth, adding 70,000 jobs in June, well above the 49,000 average monthly government gain seen in the U.S. over the past 12 months. Local and state governments added the most jobs overall, adding 34,000 and 26,000 jobs, respectively.
The health care industry also added 49,000 jobs, but this was lower than last year’s average monthly increase of 64,000. Hospitals and outpatient services added the most jobs in the industry, both of which added 22,000.
Social assistance, another public service sector, added 34,000 jobs in June, mostly in personal and family services, a faster increase than the average of 22,000 added over the past 12 months.
Construction employment also increased in June, adding 27,000 new jobs. Industries that saw job losses included retail trade, which lost 9,000 jobs. Furniture retailers also lost about 6,000 jobs.
Average wages have generally increased across many industries: Over the past year, hourly wages have increased 3.9%.
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Consumer confidence on the rise after months of decline
Consumers’ outlook for the economy is rising again after months of decline. The Conference Board Consumer Confidence Index It rose to 102 from 97.5 in May. Scores above 100 tend to indicate a strong economy.
The Current Situation Index, which measures consumers’ opinions of current business market conditions, also increased. The index rose to 143.1 in May from 140.6 in April, indicating a more positive outlook for the current labor market.
“Consumers’ assessment of the current business environment is somewhat less favorable than last month, but the strength of the labor market continues to support consumers’ overall assessment of the current situation,” said Dana M. Peterson, chief economist at The Conference Board. “Views of the current labor market environment improved in May, with fewer respondents saying jobs are ‘hard to find’ outweighing a slight decline in those saying jobs are ‘plentiful.’ Looking forward, the Expectations Index rose as fewer consumers expect worsening future business conditions, job availability and incomes,” Peterson said.
While the economic outlook has been generally positive recently, the possibility of a recession remains a major concern for many consumers.
“The likelihood of a U.S. recession over the next 12 months rose again in May, with more consumers considering a recession either ‘somewhat likely’ or ‘very likely’,” Peterson explained.
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Housing market remains unaffordable
One area where we’ve seen little improvement is the housing market, where affordability remains a dream for many American families. U.S. Home Affordability Report The data showed that the median priced home remains difficult to purchase compared to historical averages.
The surge in home prices is being driven primarily by soaring home prices, which have reached a new high of $360,000 and mortgage rates are back in the 7% range.
“The latest home affordability data presents a clear challenge for homebuyers. Home prices are rising and mortgage rates remain relatively high, factors that are making housing more unaffordable,” said Rob Barber, CEO of ATTOM. “These trends are often intensified during the spring buying season when buyer demand increases. However, this year’s trends have been particularly challenging for prospective homebuyers, more so than at any point since the housing market boomed in 2012.”
Wages are not keeping up with housing costs. Lending guidelines for homebuyers typically dictate that only 28% of income should go towards housing costs. According to the Home Affordability Report, 35.1% of the national average wage currently goes towards housing costs.
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