Employment growth has fallen below 200,000 two months in a row for the first time since the onset of the pandemic in 2020, but the pace of hiring is also faster than the Federal Reserve would like:
The numbers: The U.S. added a more modest 187,000 new jobs in July, perhaps a sign the economy is cooling enough to drive inflation lower and even stave off further increases in interest rates.
Higher rates work to slow inflation by depressing the economy, but they also raise the risk of recession. The Fed is aiming to extinguish high inflation without triggering a downturn — what economists call a “soft landing.” Key details: The increase in hiring in July was concentrated in just a handful of areas, mostly health care and social assistance.Hiring also rose slightly in leisure and hospitality, finance, wholesale and government.
High labor-force participation can also help to reduce inflation. When more people are looking for work, companies don’t have to raise wages as much to obtain labor. The economy still isn’t out of danger, though. The Fed has raised interest rates to the highest level in a few decades and some key parts of the economy are suffering.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
As GOP Wages 'Morally Appalling' War on Food Aid, Data Shows 35% Rise in Hunger'No one should be shocked that when the government takes away food, as well as money to buy food, hunger increases.'
Read more »
Farm Must Pay Over $500K for Skimming Wages of H-2A Foreign Visa WorkersA New Jersey farm has been ordered to pay more than half a million in back wages and fines for skimming wages and not providing sanitary housing for foreign H-2A visa workers it imported to take asparagus-cutting jobs.
Read more »
Stanford Health Care residents demanding better wagesStanford Health Care residents are demanding better wages as they say many of them are struggling with debt and making ends meet.
Read more »
Climate change made July hotter for 4 of 5 humans on Earth, scientists findMore than 6.5 billion people, or 81% of the world’s population, sweated through at least one day where climate change had a significant effect on the average daily temperature, according to a new report issued today by Climate Central.
Read more »