The Bureau of Labor Statistics released August employment figures. This continued the strong growth in jobs. According to the BLS, 315,000 jobs were created in August. This is a stronger performance than analysts expected and follows up on July’s revised figure of 526,000.
The unemployment rate increased by 0.2 percent, a sign that there was more people entering the labour market. The labor participation rate, closely monitored by the media, rose from 62.1 percent in July to 62.4 in August.
Also, the Department of Labor announced that 11.2 million positions were available in July, an increase of 11 million from June. This means that there are almost two jobs vacant for every person who is unemployed.
However, not everything is perfect.
Wall Street Journal
Other indicators point to an economy slowing down due to high inflation. To slow down the economy and stop price rises, the Federal Reserve raises interest rates. According to Commerce Department, the gross domestic product fell in both the first quarter and the second quarters.
The labor market is thriving as employers attempt to keep up with demand after the steep, pandemic-driven job losses in early 2020. Since April 2020, when the market was at its lowest point, payrolls have seen a steady increase in rehiring.
The number of employed people has now reached pre-pandemic levels. The job market is expected to fall as employers have rehired almost all of the employees they had hired. Employers will be forced to rethink their expansion plans due to the Federal Reserve’s rising interest rates.
As the Fed attempts to control inflation, which is at an all-time high of four decades, the Fed could see the job market weaken over the next months. At each of their two previous meetings, Fed officials raised their benchmark interest rates by 0.75 percent. Officials plan to increase the benchmark interest rate by 0.75 percentage points at their September meeting.
Higher interest rates are designed to make it more costly for individuals and businesses to borrow money and spend money. This could slow down economic growth and reduce price pressures.
The election will not bring about a downturn in the employment market. Inflation will not be as frightening with gas prices falling. Biden and Democrats will turn this modest bit of positive news into a midterm strategy. They will credit the economic gains while blaming Republicans who tried to destroy democracy.
This combination may prove to be unbeatable.