2023-06-01 19:21:51
The US economy faced successive challenges as the inflation rate continued to rise, prompting the Federal Reserve to increase interest rates ten times in a row.
Despite all this, the US labor market has continued to prove its resilience over the past months, and it is expected that this will be confirmed once once more in the monthly jobs report expected tomorrow, Friday.
Economists expect the labor market to add regarding 190,000 new jobs in May, according to Refinitiv, with the unemployment rate rising to 3.5 percent, but still near its lowest level in a decade.
While this is a significant decline from the 253,000 jobs added in April, it is still slightly above the average monthly jobs seen during a period of labor market strength in the years leading up to the coronavirus pandemic.
“In the past few months, the labor market has continued to defy pressure, adding a steady amount of jobs, and keeping unemployment at historically low levels, despite high interest rates, banking turmoil, and technical layoffs,” said Daniel Zhao, chief economist at Glassdoor. and debt ceiling negotiations.
“After the good April jobs report, this is likely to be repeated in May with the same strong labor market performance,” Gao added.
Concerns remain
Although the monthly employment rate has not declined as much as had been expected up to this point, there has been a significant slowdown this year, compared to the massive employment rates of the past three years.
Some traditional signs of a recession were flashing red, as layoff announcements have quadrupled so far this year to 417.5 thousand jobs, the highest level since 2020, according to a report issued by the Challenger Foundation on Thursday.
Declining consumer confidence, and monthly declines in the Conference Board’s leading economic indicator, also suggest that deflation may begin in the near future. However, this long-anticipated recession is yet to come.
Markets are awaiting the release of the US government jobs report for May, on Friday at 12:30 PM GMT.
(Alicia Wallace – CNN).
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