The US job market is growing well

According to newly released data from the US Department of Labor, in April, the world’s largest economy created 428,000 new jobs in the non-farm sector, higher than experts predicted. The main drivers coming from the entertainment, service, manufacturing, and transportation sectors… have contributed to keeping the unemployment rate stable at 3.6%.

Mr. John Leer – chief economist, Morning Consult said: “These figures are really impressive and show that the demand for the labor market is still very high. The US has recorded an increase of over 400,000 jobs. work/month for 12 consecutive months”.

However, besides the positive signals, experts also point to some worrying issues such as the labor force participation rate is still low and up to 363,000 people have decided to leave the job market. in April. This makes the growth unsustainable.

“The rate of people joining the labor force is still low. Many people have not returned to find work. This will be a significant obstacle in the future, because the labor supply will continue to be limited. That will lead to pressure to raise wages and then increase prices,” said John Leer.

Market Wall Street stocks received the above information with a not very positive attitude. All three major indexes fell in the last session of last week, when investors worried that businesses must continuously raise wages to attract workers would exacerbate inflation in the US, which has already at a 40-year high.

Kevin Nicholson, chief information officer, RiverFront Investment Group, said: “The decline is due to the market’s concern that, if job demand remains this high, we will continue to see inflation rates on a daily basis. increasing even higher, leading to interest rate hikes”.

The above developments US job market is forecasted to significantly affect the policies of the US Federal Reserve (FED) in the near future. The Fed is currently trying to tighten monetary policy to curb inflation but at the same time ensure not to push the economy into recession, after recording negative growth in the first quarter.

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