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By Kristin Myers, Editor-in-Chief

What's Happening Today

If you were worried about a recession, you can breathe a small sigh of relief this morning. The U.S. economy added 372,000 jobs in June, the Bureau of Labor Statistics reported today, significantly more than the 250,000 gain economists had forecasted.

Meanwhile, the unemployment rate remained unchanged at 3.6% for the fourth month in a row, in line with expectations, and now sits just above the pre-pandemic unemployment rate of 3.5%.

While job growth did slow slightly from May when the U.S. added 384,000 jobs, the number confirms what policymakers at the Federal Reserve have been saying for weeks: The U.S. economy and the nation's labor market remain strong.

So what happens now? This latest jobs report strengthens the Fed's case that the economy can handle more interest rate hikes as it fights rising inflation. You can expect that not only will rate hikes be coming at the Fed's next policy meeting later this month, but they will likely be aggressive, making the cost of loans—like a mortgage or credit cards—even more expensive.

But while you might not appreciate higher interest rates, the strong jobs report should help ease anxieties about a possible looming recession.

- Kristin

Editors' Picks

Strong June Jobs Report Might Ease Your Recession Worries (The Balance)

Housing-Affordability Index Drops to Lowest Level Since 2006 (The Wall Street Journal)

Surge in Black Americans' Labor-Force Participation Reversed Last Month (Bloomberg)

Railroad Bottleneck at Nation's Busiest West Coast Ports Reaches Inflection Point (CNBC)

How To Create Your Financial Plan (The Balance)

The Best Time To Open a Savings Account (The Balance)

Why Are Refinance Rates Higher Than Purchase Rates? (The Balance)

Term of the Day

Unemployment Rate

The unemployment rate is the number of unemployed divided by the number in the civilian labor force. Everyone without a job isn't necessarily unemployed though, at least according to the Bureau of Labor Statistics. To be counted in the unemployment rate, you not only have to be without a job, you also must have actively looked for work in the past four weeks. If you were temporarily laid off and are waiting to be called back to that job, you're still counted. If you've given up looking for work, you're not counted in the unemployment rate. Many people argue that the real unemployment rate is much higher, since it should count those discouraged workers.

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Off the Charts

Broken down by industry, job growth last month was strongest within the professional and business services sector, which gained 74,000 positions, according to the BLS. The leisure and hospitality sector, and health care were next, with 67,000 and 56,700 new positions, respectively. Meanwhile, manufacturing employment in the U.S. recovered to its pre-pandemic level reached in February of 2020, with 29,000 new roles in June.