The U.S. unemployment rate dropped to a 5.3 percent seven-year low as employers provided 223,000 jobs in June. Wages, however, failed to increase and other economic indicators of the job market remain unpredictable.
The Republican-American reported that the rate of unemployed fell from 5.5 percent in May, as confirmed by the Labor Department. This significant drop also included people out of work who had given up on their job search and were no longer counted.
Similarly, American jobseekers fell to a 38-year low as a possible indicator of more discouraged jobseekers. In April and May, employers also added 60,000 fewer jobs than what the government had previously estimated.
The reported figures depict the uncertainty of the current job market in its attempt to bounce back from the Great Recession. Americans had begun looking for jobs in May, yet such gains had an upturn in June. Wages that once showed signs of increase had now frozen.
WWLP said that the Bureau of Labor Statistics revised the unemployment rate of May, and it was not as promising as they originally perceived. The revision showed that the report fell short of 60,000 jobs.
Nonetheless, the past three months had shown a hiring average of 221,000, which is a far cry from 195,000 in the first months of 2015. This is taken as an indication of employer confidence on the consumers' demand that goods and services will remain strong in the next months to sustain more hiring.
As far as the flat wages are concerned, Tara Sinclair, chief economist at the job site Indeed, and professor at George Washington University said that it would make sense to wait until December to start that slow rate increase, reported the Next Digit.
Today's report may amplify expectations of the Fed boosting the key short-term rate it has been controlling in September or if not, in December. In order to support the economy, the Fed has been keeping that rate close to zero for 6.5 years. A fed rate hike would result to higher mortgage rates and other loans.
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