Will US jobs numbers pick up as the economic recovery gathers pace?
After the last two US monthly jobs came in well below economists’ forecasts, the pace of hiring in June is expected to have accelerated following rising vaccinations and reopenings across the country.
Economists polled by Bloomberg forecast Friday’s non-farm payrolls report will show that the US economy added 700,000 jobs this month, driven by the leisure and hospitality industries — substantially higher than the 559,000 jobs created in May and far above April’s 278,000 figure. The unemployment rate, meanwhile, is projected to have dipped slightly to 5.7 per cent from 5.8 per cent.
Labour shortages, caused by worries about catching Covid in the workplace, childcare limitations and — according to some economists and politicians — extended federal unemployment benefits, have become more acute, with employers competing to hire as demand picks up from pandemic lows. But low Covid transmission, rising vaccination rates and the reopening of major economic centres such as New York and California have set the stage for a rebound in hiring.