Wage Surge and Job Growth in June: Positive Signs for the U.S. Economy

The U.S. economy continued to create jobs in June, with payrolls increasing by 209,000 according to the Bureau of Labor Statistics monthly report.

While this increase was slightly less than some economists had predicted, the unemployment rate dropped to 3.6% and the employment increase was still enough to keep the economy growing.

Other good news for Americans is that wage numbers were stronger than expected, with average hourly earnings increasing by 0.4% during June, up 4.4% from June 2022.

Government and Health Care Sectors Lead the Jobs Growth

Government jobs increased significantly during June, with 60,000 jobs being created in the sector, almost entirely on state and local levels. Health care also saw significant job growth, with significant employment increases in hospitals and residential care facilities. Other sectors with notable growth were social assistance (24,000) and construction (23,000).

Many policymakers remain optimistic about the resilience of the U.S. economy due to its sustained growth in the labor market.

“There is a path to getting inflation back down to 2 percent without having to see the kind of sharp downturn and large losses in employment,” Federal Reserve Chairman Jerome Powell said at the end of last month.

Wages have risen 4.4% over the last 12 months, outpacing the inflation rate of 3.6% during that same period.