U.S. Employers Add 372,000 Jobs In June 2022

Despite high inflation and slowing growth, American companies added 372,000 jobs in June, a surprise strong gain that will likely prompt the Federal Reserve to continue substantially hiking interest rates to attempt to calm the economy and curb price increases, Christopher Rugaber reported for the Associated Press (AP).

Photo Insert: The rapid pace of hiring indicates that firms continue to want to hire to fulfill high client demand – a pattern that should alleviate concerns that the US economy is on the cusp of a slump.

The unemployment rate remained at 3.6 percent for the fourth consecutive month, according to the government, matching a near-50-year low reached before the pandemic struck in early 2020.

The rapid pace of hiring indicates that firms continue to want to hire to fulfill high client demand – a pattern that should alleviate concerns that the US economy is on the cusp of a slump. The labor market's tenacity shows that the economy is still on solid ground, at least for the time being.

“For all the doom and gloom that’s in the markets right now, companies themselves still seem pretty upbeat on their own progress,” said James Knightley, chief economist at ING, a bank. “It sort of dampens the near-term fear that we’re heading into an impending recession.”

In June, numerous sectors of the economy experienced significant job growth. 78,000 jobs were added in health care, 36,000 in transportation and warehousing, and 74,000 in professional services, which includes accounting, engineering, and legal services. In addition, the restaurant, hotel, and entertainment industries gained 67,000 jobs.

John Schall, the owner of a Boston-based Tex-Mex restaurant chain called El Jefe’s Taqueria, is enjoying strong sales growth and says he’s optimistic about his business. He intends to open his eight restaurant in Pittsburgh the following week.

Schall has employed five supervisors and will hire 30 hourly staff. He is somewhat unconcerned by inflation and supply chain issues, having established six businesses in the tumultuous two years since the pandemic struck. His sales are increasing at a rate of 25% to 30% per year.

“All of them are issues, but overall, I couldn’t be more excited about where we’re at and where we’re going,” Schall said. Rising prices have eroded his profits, he said, but he thinks inflation will be temporary, therefore he has no plans to raise prices beyond the one he implemented nine months ago.

Schall is attempting to increase the productivity of his employees by purchasing a machine to do the majority of the slicing and dicing of the restaurant's onions, tomatoes, and plantains.

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