Despite rising inflation, the U.S. added 428,000 jobs in April | Health

By Paul Wiseman-AP Economics Writer

Washington (AP) — US employers added 428,000 jobs in April, a series of solid employment against severe inflation, chronic supply shortages, the Russian war against Ukraine, and much higher borrowing costs. Was expanded.

Friday’s employment report from the Ministry of Labor showed that last month’s employment kept the unemployment rate at 3.6%, just above the half-century lows.

The increase in employment in the economy is surprisingly consistent, even in the face of the worst inflation in 40 years. Employers have added at least 400,000 jobs for the 12th consecutive month.

At the same time, April employment growth could put the Federal Reserve on track to stimulate consumer spending and significantly raise borrowing rates to combat inflation, along with steady wage increases. The US stock market was sluggish on Friday morning trading, worried that the power of the employment market would keep wages and inflation high, and consumer and corporate borrowing costs would rise. Higher loan rates can put pressure on a company’s profits.

Paul Ashworth, Chief US Economist at Capital Economics, said:

The latest employment statistics included some notes about the employment market. The government has lowered its February and March employment growth estimates to 39,000.

In addition, the labor force population in April decreased by 363,000, the lowest since September. Their departure slightly reduced the percentage of Americans working or looking for a job from 62.4% to 62.2%. Many industries are slowing down due to labor shortages. Compared to the number in early 2020, just before the pandemic hit the economy, the country maintains 1.2 million jobs.

Beth Ann Bovino, Chief US Economist at S & P Global, said:

Bobino remains a workforce bystander, as some Americans remain on the sidelines of the workforce, either because of prolonged concerns about COVID-19 or because it is difficult to find affordable day care for unvaccinated children. Said that he was.

The employer continued to raise salaries last month. Hourly wages have risen 0.3% since March and 5.5% from a year ago. But prices are rising faster than wages.

“Yes, we saw wage increases,” Bobino said. However, the highest level of inflation in 40 years “people are still under pressure.”

Last month, adoption spread throughout the industry. The factory has added 55,000 jobs, the highest number since July last year. We have added 52,000 for warehousing and transportation companies, 44,000 for restaurants and bars, 41,000 for healthcare, 35,000 for finance, 29,000 for retailers and 22,000 for hotels. Construction companies slowed down due to labor and material shortages, adding just 2,000.

However, it is unclear how long the employment boom will last. This week’s Fed has raised its key rate by 0.5 percentage points. This is the most aggressive move since 2000 and suggests that there will be even more significant rate hikes in the future. Expenditure and employment costs will continue to rise as the Fed raises rates.

In addition, the enormous amount of financial assistance the government provided to households has expired. And Russia’s invasion of Ukraine accelerated inflation and clouded the economic outlook. Some economists have warned that the risk of a recession is increasing.

So far, the resilience of the employment market is particularly pronounced against the backdrop of rising prices and rising borrowing costs. This week, the Ministry of Labor provided further evidence that the employment market is still booming. Only 1.38 million Americans, the lowest since 1970, reported collecting traditional unemployment benefits. Employers also recorded a record high of 11.5 million jobs in March, saying layoffs were well below pre-pandemic levels.

In addition, the economy currently has two jobs available on average for each unemployed person. This is the highest percentage on record.

And as yet another sign that workers are enjoying extraordinary leverage in the employment market, record 4.5 million people can quit their jobs in March and find better opportunities elsewhere. I’m definitely sure.

Chronic shortages of supplies, supplies and workers have contributed to the sharp rise in prices, the highest inflation rate in 40 years. Russia’s invasion of Ukraine in late February dramatically worsened the financial situation, soared global oil and gas prices, and severely clouded domestic and global economic conditions.

The Fed, which says most economists are too late to recognize the threat of inflation, is now aggressively raising interest rates. That goal is a notorious and difficult goal. This is the so-called soft landing.

“We’re trying to slow the economy down enough without causing a recession,” said Rubyla Falluki, chief US economist in high-frequency economics.

Many business people, especially the retail and hospitality industries, still suffer from a tough labor market.

David Culhane is one of them. Since opening White Mountain Tavern in Lincoln, New Hampshire in August 2020, Calhein has raised its hourly wage from $ 12 to $ 15. Still, he can’t increase the number of employees to the required 15 people. He is worried that there may not be enough people to handle the summer tourist season.

His labor shortage is costly. With full staff, Calhain is now able to serve more customers. Meanwhile, food and electricity prices are rising.

Correspondingly, Calhein had to raise the price of some menu items by up to 50%. He is currently raising the price of an 8-ounce steak with truffle parmesan fries and asparagus from $ 17 to $ 25.

In his view, he has no choice.

“As (inflation) gets higher, and if we don’t adapt, we’re not going to achieve that,” he said.

To fully achieve the required staff level, some companies may have to do more than raise their salary.

Karen Fichuk, CEO of the dispatch company Randstad North America, said: “It means responding to new cultural norms and generational differences.”

She said many young people want a job that provides an attractive work-life balance, prioritizes diversity, and offers opportunities to make positive changes in society.

Among those who take advantage of more flexible work arrangements is Gray Rosenback in Mountainair, New Mexico. The freedom to work from home (necessary for a pandemic) has proven to be a blessing to Rosenbach.

After receiving a heart transplant in 2019, Rosenbach, now 49, had to quit his job for a year. He is a presentation designer for marketing companies and other companies, working remotely for contractors and wants to get a full-time job at a client company when his four-month contract expires. ..

In the business world, she says, “We almost accept that everyone can be in remote areas.”

AP retail writer Anne D’Innocenzio contributed to this report from New York.

Copyright 2022 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

Despite rising inflation, the U.S. added 428,000 jobs in April | Health

Source link Despite rising inflation, the U.S. added 428,000 jobs in April | Health

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