WASHINGTON (AP) – U.S. employers added 428,000 jobs in April, extending a string of solid hires that wreaked havoc on prison inflation, chronic supply shortages, Russia’s war with Ukraine and funding costs. higher.
The Labor Department’s employment report on Friday showed that last month’s hiring kept unemployment at 3.6%, the highest level in half a century.
The gains by taking over the economy are dramatically in line with the worst inflation in the past four decades. Employers added at least 400,000 jobs in 12 months.
However, it is not clear how long the job boom will last. The Federal Reserve raised its benchmark interest rate to half a percentage point this week – its most aggressive move since 2000 – and signaled further large increases in interest rates. When Fed rates rise, it will make it more expensive for consumers and businesses to borrow, spend and rent.
In addition, the government’s massive financial assistance to families has been exhausted. Russia’s invasion of Ukraine has helped accelerate inflation and cloud the economic outlook. Some economists warn of the growing risk of recession.
So far, the stability of the labor market has been particularly seen in the face of a runaway rise in prices and rising value of money. This week, the Department of Labor showed further evidence that the labor market is still evolving. It says only 1.38 million Americans accrued traditional unemployment benefits, the lowest since 1970. And it says employers had a record 11.5 million jobs in March and layoffs remain at levels of pre-pandemic.
Furthermore, today’s economy has, on average, two jobs per unemployed person. This is a record percentage.
And another sign that workers are enjoying massive labor market action, with a record 4.5 million people leaving their jobs in March, clearly convinced they can find better opportunities elsewhere.
Chronic shortages in goods, supplies and labor have contributed to sharp rises in prices, the highest inflation rate in 40 years. Russia’s invasion of Ukraine in late February greatly worsened the financial scene, causing rising oil and gas prices around the world and severely blurring the national and global economic picture.
Meanwhile, when many industries slow down due to labor shortages, companies are cutting wages to attract candidates and retain current employees. Nevertheless, wage increases have not given way to rising consumer prices.
That’s why the Fed, which most economists say has been too slow to recognize the threat of inflation, is now aggressively raising rates. Its purpose is clearly complex: the so -called. Soft access.
Source: Huffpost
