Economy: US to add jobs despite recession fears

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After another fantastic jobs report, it’s time to give the White House credit, says Paul Waldman Washington PostCounting the 528,000 jobs added in July, “the U.S. economy has recovered all the jobs (22 million) lost when the economy shut down in 2020.” This is the fastest job recovery in the country’s history. Part of it happened under the watchful eye of former President Donald Trump, but “in his first three years in office before the COVID-19 pandemic hit, the economy created 6.5 million jobs in him. ”. President Biden has already overseen the creation of 9.5 million jobs half the time, marking the “largest job creation record of any U.S. president, at least so far.” The passage of the US bailout plan in March 2021 has been widely criticized for fueling the current inflation. But by providing individuals and businesses with all that help, consumers kept their spirits up, got people back to work, and “avoided what could have been a long-term catastrophe.”

While the Biden administration publicly acknowledges that the employment numbers are extraordinary, privately “they wanted it to be lower,” Ben White said. PoliticoThe data “will almost certainly scare the Federal Reserve into increasing interest rate hikes to slow the economy”. It fights for talent and offers high wages to attract talent. That’s usually a good thing. But the Federal Reserve is concerned that higher labor costs “could create a wage-price spiral” that would be passed on to consumers. The latest report gives Fed Chairman Jerome Powell “the green light to stay aggressive” on inflation, said Jonathan Levin. bloombergAverage hourly earnings last month were up another 0.5% from June. The rise was “quite broad-based across industries and sectors,” with airlines shaken by a shortage of pilots and crew this summer, typical of businesses forced to raise wages to meet demand. A good example: upward pressure on wages encourages higher prices. In any case, curbing inflation “will come with some trade-offs with unemployment.”

It’s still a great market for job seekers and job seekers, said Chip Cutter. wall street journalAlthough the number of vacancies fell slightly last month, there are still unprecedented numbers of vacancies (10.7 million). But employers in hospitality, retail, healthcare and other industries say they’re seeing new signs that hiring workers is becoming less difficult.Uber struggles to find drivers , citing “inflationary pressure” as a motivation for “more people to drive for their services.” ‘Fear of recession also seems to be keeping workers in their existing jobs’ It’s time to say goodbye to big resignations, said Zoe Han market watchWorkers still have bargaining power, but the “turnover rate” of low-wage workers has clearly slowed after peaking in early 2022. We stand by workers and are willing to “run through this recession” to reduce the chance of unemployment.

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