The U.S. economy created 528,000 new jobs in July, an incredibly high number that has yet to raise worries about persistent inflation.
To 3.5 percent, the jobless rate decreased.
According to the Bureau of Labor Statistics, job growth was “widespread,” with increases in leisure and hospitality, professional and business services, and healthcare.
President Joe Biden praised the job growth and said that the unemployment rate, which is currently 3.5 percent, “matches the lowest it’s been in more than 50 years.” More people than ever before are employed in America.
However, the employment growth coincides with the Federal Reserve’s efforts to slow the economy and control inflation.
The study was “uncomfortably hot,” tweeted Jason Furman, a Harvard professor who served as President Barack Obama’s chairman of the Council of Economic Advisers. He mentioned that the June figure was revised up to 5.4 percent, and that average hourly wages increased by 5.8 percent in July.
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“Recession is no longer a major concern. More of a concern is inflation, he wrote.
According to Mark Zandi, chief economist at Moody’s Analytics, “the job market hasn’t slowed down considerably. Any worries that the economy is already in a recession should be allayed by this. The Federal Reserve, which has been increasing the prime interest rate, “won’t take any solace in the solid job data,” he claimed in his essay. The goal of policymakers is to reduce wage and price pressures, therefore they want unemployment to increase a little.