CFO  News Hubb
Advertisement
  • Home
  • CFO News
  • Financial Advisor
  • Financial Planning
  • Markets News
  • Economics
  • Contact
No Result
View All Result
  • Home
  • CFO News
  • Financial Advisor
  • Financial Planning
  • Markets News
  • Economics
  • Contact
No Result
View All Result
CFO  News Hubb
No Result
View All Result
Home Economics

Jobs report: Moderating wage growth means the Fed doesn’t need to raise interest rates further to contain inflation

by admin
July 8, 2022
in Economics


Below, EPI president Heidi Shierholz offers her initial insights on the jobs report released this morning, which showed 372,000 jobs added in June and wage growth continuing to decelerate. Read the full Twitter thread here. 

 

Wage growth is also clearly decelerating, which is enormously consequential for fed policy. Quarterly wage growth ticked down in June and has dropped substantially in recent months. It is now near its pre-COVID range. 2/ pic.twitter.com/USlGjDBdLO

— Heidi Shierholz (@hshierholz) July 8, 2022

Put another way: nominal wage growth moderating even in the face of continued inflation is more evidence that the fed can keep labor markets tight right now without feeding inflation. 4/

— Heidi Shierholz (@hshierholz) July 8, 2022

One big concern in the jobs numbers: There is still a giant gap in state and local govt jobs—they are down 656,000 since Feb ‘20, with close to half of that, 306,000, in education. It’s crucial that state and local govts use their ARPA funds to raise pay and refill those jobs. 6/

— Heidi Shierholz (@hshierholz) July 8, 2022

Though note, we aren’t at “mission accomplished” in the private sector either. Depending on how you measure the counterfactual, the total gap in the labor market right now is around 3 million jobs, with around 2 million of that in the private sector. 8/

— Heidi Shierholz (@hshierholz) July 8, 2022

But all groups are seeing far faster recoveries *than they did following the Great Recession*. From the start of the Great Recession, it took 11.5 years for Black unemployment to get down to 5.8%, but this time around it took 2 years and 4 months. 10/

— Heidi Shierholz (@hshierholz) July 8, 2022

And no, those relief and recovery packages are not to blame for inflation. 12/ https://t.co/a3qAcf1vN5

— Heidi Shierholz (@hshierholz) July 8, 2022

Sign up for EPI’s newsletter so you never miss our research and insights on ways to make the economy work better for everyone.





Source link

Previous Post

Think Johnson Has Had a Bad Week? He’s Achieved What He Wanted

Next Post

Private Payrolls Growth Stayed Strong in June

TRENDING

Financial Advisor

I Bonds vs. Treasury Inflation Protected Securities (TIPS)

August 9, 2022
Financial Planning

Decisions Don’t Have to Be Either-Or

August 9, 2022
Financial Planning

How to Qualify for SBA Working Capital Loans

August 9, 2022
Markets News

Worried About Your Equifax Credit Score? Here’s What to Do

August 9, 2022
Inflation spiral seen breaking in July, helped by lower energy prices
Markets News

Inflation spiral seen breaking in July, helped by lower energy prices

August 9, 2022

© 2022 CFO News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy.

Navigate Site

  • Home
  • CFO News
  • Financial Advisor
  • Financial Planning
  • Markets News
  • Economics
  • Contact

Newsletter Sign Up

No Result
View All Result
  • Home
  • CFO News
  • Financial Advisor
  • Financial Planning
  • Markets News
  • Economics
  • Contact

© 2022 CFO News Hubb All rights reserved.