The article shows that the March jobs numbers are disappointed since the U.S. only added 103,000 jobs when the numbers added in February 326,000 and the previous average number is 202,000 in 2018. Currently, the unemployment rate is around 4.1% which is a very comfortable number, so the news expected that the future improvement in the labor market would be showed in the form of increasing labor force instead of decreasing unemployment rate. In other words, there would be more people who are used to not look for jobs decide to work in the future.
Under the influence of the trade war, I would expect a large increase in the labor force and I am curious that how the real future labor market would be.
https://www.nytimes.com/2018/04/06/upshot/the-march-jobs-numbers-show-the-economy-is-sound-but-far-from-invincible.html?rref=collection%2Fsectioncollection%2Fbusiness-economy
5 comments:
I am very curious about the future labor market in the US as well. There will eventually be an increase in unemployment to attain the natural rate of unemployment of about 5%. Hopefully, there will not be an overreaction by the US when this happens, which could hurt the economy more than it should.
I think the labor market figures are likely to fluctuate over the upcoming months because of the uncertainty that prevails of a trade war being sparked. I wouldn't be too surprised if the numbers either increase or decrease in terms of unemployment, given the likelihood of a trade war.
I agree with Husnain. I think because of the uncertainty in the government there will be fluctuations in the level of unemployment. However, I think there will always be fluctuations in the level of unemployment due to fluctuations of business cycles in boom and bust periods.
I agree with Husnain aswell. There is a lot of uncertainty in the gov't and who knows what will happen with the fluctuations in the levels of unemployment but I guess we will have to wait and see.
I agree with the comments above, the unemployment should increase to a natural rate of 5% by increasing the labor force participation rate. The trade war with China would negatively impact the economy, so it would be increasing to see how such an event would affect the overall labor market.
Post a Comment