October 7, 2022

Taylor Daily Press

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Fewer new jobs have been added in the United States, and unemployment has fallen sharply

Fewer new jobs have been added in the United States, and unemployment has fallen sharply



Fewer new jobs have been added in the United States, and unemployment has fallen sharply


© ANP
Fewer new jobs have been added in the United States, and unemployment has fallen sharply

WASHINGTON (AP / BLOOMBERG) – 200,000 private sector jobs were added in the United States in December. That number from the Ministry of Labor was lower than it was in November and much lower than economists had expected, although the number of jobs in October and November was still revised upwards. Unemployment is significantly lower.

Economists expect an average of 450,000 new jobs, but the counter is stuck at 199,000. Expectations have not yet been met, including the 141,000 jobs done in October and November.

Despite this, unemployment fell to 3.9 percent from 4.2 percent. This is 0.4 percent higher than the US unemployment rate before the Corona crisis.

Policy

Statistics indicate that there will not be a faster tariff hike than analysts expect from March this week. Labor market data do not immediately trigger a sharp tightening of the Federal Reserve’s monetary policy.

The minutes of a policy meeting in mid-December show that the central bank is ready to raise interest rates faster than expected, but President Jerome Powell reiterated that the corona support package for government securities must be phased out before raising interest rates. It is now scheduled for March.

Of course, interventions in interest rate policy depend on the growth of inflation, about which new figures will be released next week. Problems in the supply chain, increased transportation costs, and a shortage of raw materials and supplies have pushed up the prices of many commodities in recent times. American companies also crave for employees who are rarely available. Thus, employees have to be paid more. It became clear on Friday that hourly wages were up 4.7 percent year-on-year.

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