Connect with us


What the US jobs numbers really mean | Inflation News




Are there really more people working than at any time in American history, as President Joe Biden claims?

Searing US jobs numbers for July may have eased worries about a recession, but they also raised the risk of another 75 basis point hike from the Federal Reserve in September. .

US employers added 528,000 jobs in July, beating all estimates, and the unemployment rate edged down to 3.5%, the US Bureau of Labor Statistics said on Friday. Leisure and hospitality, professional and business services, and health care saw the strongest job growth overall. The unemployment rate and total non-farm employment both reached pre-pandemic levels in February 2020.

Not only is 528,000 a big number in the context of the past few months, but it’s a blockbuster number compared to what we would have before the pandemic, said Kenneth McLaughlin, professor of economics at Hunter College in New York, at Al Jazeera.

Before the pandemic, if we had 150,000 for that number, say in 2019, that would be really big, McLaughlin said.

The 528,000 jobs added were more than double the expectations of many seasoned analysts, including at Goldman Sachs, where economists had estimated nonfarm payrolls would rise by 225,000 in July.

The hot wage reports mean the Federal Reserve will continue to raise interest rates in its fight against decades-high inflation. Last week, the US central bank raised rates by 75 basis points. While another unusually large increase may be appropriate at our next meeting, that decision would depend on new data, Federal Reserve Chairman Jerome Powell said last Wednesday.

US inflation jumped 9.1% in June from a year earlier, the biggest rise since 1981. Data for July is due out on Wednesday and is expected to show slowing inflation after lower prices gasoline.

The Fed said it would use all its tools to better balance demand with supply to bring inflation down to 2%.

Goldman Sachs economists said on Friday they expect the federal funds rate to rise another 100 basis points over the next three meetings, with a 50 basis point increase in September and a 25 basis point increase in September. basis in November and December.

The numbers explained

Last week, the preliminary estimate released by the US Department of Commerce showed that the economy had slowed for a second straight quarter. Gross domestic product (GDP) fell at an annualized rate of 0.9% after falling 1.6% in the first three months of the year. Typically, two quarters of declining growth indicates that the economy is slowing.

US President Joe Biden, who last week pushed back against the idea that the US is heading into a recession, took to Twitter to hail Friday’s jobs numbers. More people are working than at any time in American history, he wrote.

Today’s jobs report shows the economy added 528,000 jobs in July.

More people are working than at any time in American history. It is no coincidence, his results.

President Biden (@POTUS) August 5, 2022

The reason there are more people employed than ever before is because the population has grown, but once that’s factored in, it doesn’t look quite as rosy, McLaughlin explained.

We haven’t fully recovered from the pandemic and we haven’t even fully recovered from the Great Recession, he said. The most important thing for me is the employment rate, which has just reached 60%. It was 61.1% before the pandemic and 63.3% before the Great Recession.

The employment rate excludes students, homemakers and retirees.

That’s why I say the 3.5% unemployment rate is incredibly insane in a historical context. And it is, but it doesn’t really tell the whole story.




The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos


to request, modification Contact us at Here or [email protected]