A Look Into The U.S. Government’s June Jobs Report

(TheConservativeTimes.org) – A government report reviewing June’s job numbers is expected to show a slow but steady growth in jobs over the month. Forecasters looking at this month in job growth have been pushing for a soft landing when it comes to the economy.

There are a few signs that show the labor market is normalizing after the Pandemic stir up. One sign is that the unemployment rate has been under four percent for thirty months straight or longer. Payroll gains have been up, job openings are down and are balancing out, and companies have been announcing job cuts at a slower pace than last year.

Forecasters are looking for signs that the pace of hiring is slowing down without plummeting, which would match with a slowing of inflation. Employers added a little under two hundred thousand jobs last month, which is less than the previous month and shows that the economy is headed where the Federal Reserve hopes.

The Feds have been waiting for the economy to arrive at a place where they are able to cut rates, and so far the results aren’t where they want it. They are trying to avoid the economy dropping into a recession while looking for a balance of supply and demand in workers. Andrew Flowers, chief economist at Appcast, said, “The labor market has really proved the doubters wrong.”

Fed Chair Jerome Powell said that inflation flared earlier this year but is beginning to slow down. The personal consumption expenditures index is one of the bigger factors that the Feds are tracking, which actually showed slowing of its annual increase. That could potentially mean the odds that the Feds will cut rates by the end of the year will be higher.

This doesn’t mean that they are ready at the moment to stop their fight against inflation, but it could mean that things would change sooner than later. Said Powell, “We just want to understand that the levels that we’re seeing are a true reading of underlying inflation.”