With the unemployment number being released this past Friday, the numbers for new jobs were also posted. March came in underperforming. Only 236,000 jobs were created when 239,000 were expected. Though this is not a huge difference it is a sign that the labor market which has been on a boom recently is starting to slow down. In the last 12 months this is the first time that new job creation underperformed. However this market is still significantly higher than pre pandemic numbers where the average new jobs per month was about 183,000. Some of the industries leading the way are the hospitality, leisure, and health care. As more people begin to get back out into the world hospitality and leisure are starting to move back to pre covid number., Health care has been on the uptick because of the pandemic and continues to grow. Along with new jobs, the amount of available jobs drop to 9.93 million which is the first time in 10 years that it has dropped below 10 million. This is another signal that the boom is starting to slowly come back down to earth from soaring during covid.
https://www.cnn.com/2023/04/07/economy/march-jobs-report-final/index.html
2 comments:
This being the first time in the past year that it has underemployed and job cuts are up so high for the year kind of go hand in hand together. It will be interesting to see if these numbers will continue to slow down or if they will bounce back next month.
These numbers show that the Federal Reserve increasing interest rates over the last year has been effective in cooling down the labor market and increasing the unemployment rate. Going into a recession may still be the case--especially considering the housing bubble--but these slowly decreasing numbers are a good sign for the Federal Reserve, so I am hoping the interest rates will stay put in response.
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