USA, the job market cools in April
For the first time in seven months, the mighty labor market showed a slight slowdown. According to the Bureau of Labor Statistics, “only” 175,000 jobs were created in April, but forecasts called for as many as 240,000. Unemployment was also consistent with this trend, increasing by only a tenth to 3.9%. An unimaginable fact in many economies but in the still strongest economy on the planet is an indicator and a decent signal for the Fed. In fact, the always high consumption and very lively employment have slowed down the actions of the American Central Bank regarding the lowering of interest rates. If these two data were confirmed in the next month too, it could be said that high rates are slowing down economic trends. There are two observers of the labor market in the country: one for businesses which indicates non-agricultural jobs and the second focused on families. The results are not always identical.
USA, almost 3 million jobs created during the year
Considering, for example, the last calendar year, according to the survey of entrepreneurs, the jobs created are there were almost 3 million while the survey aimed at families revealed almost 100,000 fewer places. But in which sectors did employment increase in April? Healthcare, welfare, transport and warehousing. But in an election year even a monthly figure can be comforting for some and less so for others. For Biden in particular, who has made the strength of his Bidenomics one of the strong points against the “six-year-old” Trump, a slightly cold job market could be bad news. But the President instead said that “With 175,000 new jobs, America’s great recovery continues. When I took office, I inherited an economy on the brink of collapse, with the worst economic crisis in a century. He had a plan to transform our country and build our economy from the center out and from the bottom up. Now we are seeing that plan in action, with more than 15 million jobs created since I took office, working-age women employed at a record pace, wages growing faster than prices, and unemployment below 4% for a record of 27 consecutive months.”
USA, wages growing by 3.9% as an hourly average
And he might not be wrong when looking at wages, up 3.9% (average hourly) over the last 12 months. Everything is increasing but with the price/wage spiral under control. Satisfying news for the Fed Chairman who did not miss the opportunity to declare that “we have the luxury of strong growth in a strong labor market, very low unemployment, high job creation and all the rest, and we can be patient and we will be prudent and cautious in making the decision to cut rates.” In this situation, most analysts agree in predicting one or two cuts, but now they no longer take them for granted. Only two months ago everyone was ready to bet on at least three cuts this year. The concern for Americans is still only one: that the increases will stop, as the Councilor of the Massachusetts Bankers Association, Michelle Bowman, feared. THEIn any case, the strongest economy in the world is sailing under the watchful eye of the Old Continent which is still struggling to restart.