Tornado Alley (PROG)

[blackhawks]

Employers added 528,000 jobs in July, as the hot labor market powers on

Source: Washington Post

The hot labor market continued to show rapid growth in July, with employers adding 528,000 jobs, despite fears of a recession.

The unemployment rate edged down to 3.5 percent, according to the Bureau of Labor Statistics. In July, the labor market continued to show stunning growth that afforded workers historic wage gains and more leverage at their jobs.

The labor market has shown little signs of cooling off, proving to be a pillar of strength for an economy facing strong head winds. Other indicators, especially inflation at 40-year highs and six months of negative economic growth paint a less rosy picture. The financial markets have lost trillions of dollars in value this year, and one measure of consumer sentiment hit a record low in June.

A slowdown in job growth would have indicated that the Fed’s interest rate hikes are achieving their intended goal of cooling down the labor market. As the Fed continues to raise rates, and borrowing becomes more expensive for households and companies, workers will probably have less leverage in the job market than they did earlier this year. Also, higher interest rates could lead to a wave layoffs.

Read more: https://www.washingtonpost.com/business/2022/08/05/jobs-report-july-2022/