Monday, August 15, 2022

Fear of recession? 3.5% unemployment rate at 50-year low in July

Despite rumors of a ‘recession’, America still delivers a strong JulyemploymentData: Jobs increased by 528,000; The unemployment rate fell to 3.5% in June from 3.6%, the same as the new crownEpidemicSuch was the case on the eve of the outbreak and in February 2020, the lowest numbers were seen for the first time in more than 50 years.

Still, some economists have reservations about the boom; State Street Global Advisors chief economist Simona Mokut said strong July jobs figures could instead be a bad omen, representing many people who are smelling the economic downturn, and are looking to find job “slots”. are keen. The job market has shifted from labor to employers.

Labour DepartmentData released on the 5th showed that the number of non-farm payrolls in the United States increased by 528,000 jobs in July, much higher than economists expected the number of job opportunities to drop from 398,000 in June. will be 250,000. The July data was the best since February this year.

Not only that, the unemployment rate continues to decline, with February 2020 at the current figure of 3.5%, the lowest number seen in more than 50 years.

Since the pandemic caused the unemployment rate to rise to 14.7% in April 2020, it has been declining or flat every month, except for a slight increase in the unemployment rate in June 2021 and January 2022. 22 million jobs were lost during the pandemic. Opportunities are completely gone.

The strong employment numbers are in stark contrast to current figures that are rumblings of a recession and gross domestic product (GDP) has actually contracted for two consecutive quarters.

Brian Colton, chief economist at Fitch Ratings, said the current US job market is three times stronger than in the past “typical economic boom years”; Nick Bunker said the US labor market “cannot be underestimated.”

This data is undoubtedly good news for President Biden, who is currently sluggish in the polls; Biden said the United States is now “an employer eager to find jobs, not workers begging for jobs”; But the current severe inflation, wage increases are not enough to compensate, and Biden has been criticized for his inability to manage inflation and even fan the flames.

But the data isn’t entirely bright: the labor force participation rate, which has been unable to return to its pre-pandemic levels, fell from 62.2% in June to 62.1%; In addition, the increase in the number of people working part-time could rise to 3.90 million by 10,000 in June from 3.03 million in June, a harbinger of cuts in working hours and a waning business boom, the Labor Department economists say. .

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