528,000 Jobs Have Been Added by Employers to Ease Recession Fears

Daniella Cressman

"U.S. employers added an astonishing 528,000 jobs last month despite signs of an economic downturn, easing fears of a recession and handing President Joe Biden some good news ahead of the midterm elections." —Paul Wiseman

The unemployment rate has now dropped.

"Unemployment dropped from 3.6% to 3.5%, matching the more than 50-year low reached just before the pandemic took hold. The economy has now recovered all 22 million jobs lost in March and April 2020 when COVID-19 slammed the U.S." —Paul Wiseman

As of last month, economists had expected only 250,000 new jobs.

"Economists had expected only 250,000 new jobs last month in a drop-off from June’s revised 398,000. Instead, July proved to be the best month since February." —Paul Wiseman

Inflation is at a 40-year high, and we are in a recession, informally speaking, but there are many factors and people define that term in multiple ways.

"Inflation is at its highest level in more than 40 years and the economy has contracted for two quarters in a row, which is the common — but informal — definition of a recession and does not take into account a host of other factors, such as the job picture." —Paul Wiseman

Biden has boosted job growth, though some believe his administration's spending is responsible for high inflation.

"Biden has boosted job growth with his $1.9 trillion coronavirus relief package and $1 trillion bipartisan infrastructure law last year. Republican lawmakers and some leading economists, however, say the administration’s spending has contributed to high inflation." —Paul Wiseman

Fortunately, gas prices have fallen.

"The president has received some other encouraging economic news in recent weeks, with gasoline prices falling steadily after averaging slightly more than $5 a gallon in June." —Paul Wiseman

Although wages have increased, they have not caught up with inflation.

"The Labor Department also reported that hourly earnings are up 5.2% over the past year. But that is not enough to keep up with inflation, and many Americans are having to scrimp to pay for groceries, gasoline and even school supplies. Job growth was especially strong last month in the health care industry, and at hotels and restaurants." —Paul Wiseman

The Federal Reserve plans to continue raising interest rates to tame inflation.

"The Fed has raised its benchmark short-term interest rate four times this year in a bid to tame inflation, with more increases ahead." —Paul Wiseman

Comments / 3

Published by

Canadian-American author writing about local politics, personal finance, & dining in Albuquerque.

Albuquerque, NM

More from Daniella Cressman

Comments / 0