(TheConservativeTimes.org) – The United States economy has been holding strong as they added over two hundred and seventy thousand jobs to the job market in May. This is a sign that the labor market continues to be upheld despite the high interest rates.
Economists predicted that the number of jobs added would be just below two hundred thousand, but the gains in May topped that number. “The great American comeback continues, but we still have to make more progress,” said President Joe Biden in response to the job market report. He continued, “On my watch, 15.6 million more Americans have the dignity and respect that comes with a job.”
Cooling in the labor market was seen even starting with the Bureau of Labor Statistics’ survey which showed that there were over eight million sitting job openings, which is the lowest in over a year. Layoffs are currently down compared to last year as well despite the announcement of layoffs from multiple companies since the year started.
The Fed will have a meeting this month where they will announce whether they’ll be decreasing the interest rates, which are at an all-time high right now.
At their last meeting, they said that inflation was still too high for them to cut interest rates as they have a target goal of two percent. Jerome Powell, the Fed chair, said, “It is likely that gaining confidence will take longer than previously expected.”
They are trying to find a balance of bringing prices down without offsetting the labor market.
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