News Analysis
The U.S. economy added a surprisingly strong 372,000 jobs in June. Many concluded that calls of a recession were greatly exaggerated after seeing the red-hot jobs report.
But despite the solid employment recovery, some observers are skeptical that the jobs market is as healthy as the government portrays.
The main concern is that the Federal Reserve may be too quick to judge that the labor market has healed enough to warrant an aggressive tightening in monetary policy, which could lead to severe job losses.
With many big and small businesses cutting their payrolls, the labor market is already showing signs of cooling. Job cuts announced by U.S.-based employers totaled 32,517 last month, up 57 percent from May, according to a report from global outplacement consultancy Challenger, Gray & Christmas, Inc….