Job Growth strongly outnumbered the expected 165,000 mark as the Econoday Consensus was released a day ago. Wage Growth, on the contrary, failed reach the expected mark and registered only 0.2 per cent increase, a 0.1 per cent deficit when compared to the excited 0.3 per cent mark. As per the US Bureau of Labour Statistics, nonfarm payroll employment witnessed an increase by 224,000 in June, with the unemployment rate showing a negligible change to remain at 3.7 per cent.
Transportation and Warehousing, Business and Professional Services, and Health Care were the major contributors to the job growth in the country. The average hourly earnings for each nonfarm worker went up by USD 0.06 from USD 27.84 to USD 27.90. Despite the growth, the fact that there are major inequalities in the income distribution has been the major talk for all economists in the country. Also, there has been a discussion concerning the counting of jobs while preparing the data. Differences between household survey and payroll survey were being highlighted over and over again. Many believed that a few more factors should be taken into account before declaring a person employed. Even if a person is working for just one hour a day, the person is counted as employed. If someone is not ready to look up for a job, they are not counted as unemployed, but are rather removed entirely from the counting of labor force. These factors are being pointed out as the key that have driven this unexpected growth of jobs in the country.
Recently, the Federal Reserve had spoken strongly about improving the quality of jobs being offered rather than the quantity in which they are offered. The spokesperson stated that Fed’s prime focus will be to increase the productivity from each job rather than generating newer jobs.
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