Hiring in the United States is likely to have increased at a healthy but more modest pace this month, reflecting a vote of confidence in the demand forecast following a strong first half of the year.
The widely awaited jobs report is expected to reveal that companies increased payrolls by 200,000 in July while unemployment remained at a record low of 3.6% and hourly pay remained stable. Earlier in the week, other data showed fewer June job openings, indicating a stronger labor market balance.
The employment report follows an unexpected uptick in second-quarter economic growth. While recession concerns remain, the US economy has proven resilient in comparison to the weakness gripping Europe and China’s sluggishness.
After the Federal Reserve raised interest rates by a quarter point this week, Fed Chair Jerome Powell stated that Fed economists no longer expect a recession in 2023.
The European Central Bank’s president, Christine Lagarde, stated that the outlook for Europe has “deteriorated.”
