Tuesday , November 5 2024
Home / Mike Norman Economics / Bill Mitchell – US labour market showing signs of faltering as real wages continue to decline

Bill Mitchell – US labour market showing signs of faltering as real wages continue to decline

Summary:
Last Friday (May 6, 2022), the US Bureau of Labor Statistics (BLS) released their latest labour market data – Employment Situation Summary – April 2022 – which reported a total payroll employment rise of only 428,000 jobs and an official unemployment rate of 3.6 per cent. However, the Labour Force survey provided the opposite impression with employment and the participation rate falling. It is difficult at this stage to reconcile the two messages except to say that the US labour market has probably reached an inflection point and a deterioration is emerging as the Federal Reserve continues to hike interest rates. The US labour market is still 1,190 thousand payroll jobs short from where it was at the end of April 2020, which helps to explain why there are no wage pressures emerging. Real

Topics:
Mike Norman considers the following as important:

This could be interesting, too:

Jodi Beggs writes Economists Do It With Models 1970-01-01 00:00:00

Mike Norman writes 24 per cent annual interest on time deposits: St Petersburg Travel Notes, installment three — Gilbert Doctorow

Lars Pålsson Syll writes Daniel Waldenströms rappakalja om ojämlikheten

Merijn T. Knibbe writes ´Fryslan boppe´. An in-depth inspirational analysis of work rewarded with the 2024 Riksbank prize in economic sciences.

Last Friday (May 6, 2022), the US Bureau of Labor Statistics (BLS) released their latest labour market data – Employment Situation Summary – April 2022 – which reported a total payroll employment rise of only 428,000 jobs and an official unemployment rate of 3.6 per cent. However, the Labour Force survey provided the opposite impression with employment and the participation rate falling. It is difficult at this stage to reconcile the two messages except to say that the US labour market has probably reached an inflection point and a deterioration is emerging as the Federal Reserve continues to hike interest rates. The US labour market is still 1,190 thousand payroll jobs short from where it was at the end of April 2020, which helps to explain why there are no wage pressures emerging. Real wages continued to decline as the supply disruptions and the greed of increased corporate profit margin push sustain the inflationary pressures. Any analyst who is claiming the US economy is close to full employment hasn’t looked at the data.
Bill Mitchell – billy blog
US labour market showing signs of faltering as real wages continue to decline
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

Leave a Reply

Your email address will not be published. Required fields are marked *