The US June jobs report was stronger than expected, but it also showed some signs the job market is starting cooling off.
The US labor market added 372,000 jobs in June, a much bigger jump than expected that points to strength in parts of the economy where other data had shown weakness.
Over the past six months, a variety of indicators have been signaling a slowdown in housing and manufacturing, sectors that are sensitive to interest rate hikes. Tech stocks, meanwhile, took a dive with the rest of the market, initiating a round of tech layoffs. But on Friday, the jobs report showed solid job growth across the board, including in all of those sectors.
“The US labor market is defying gravity,” said Becky Frankiewicz, chief commercial officer at Manpower group, a staffing firm. ”Fears of a possible recession stoked by inflation and an aggressive Fed are eclipsed by the simple reality that employers can’t hire fast enough to meet demand.”
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