Job Gains Unlikely to Ease Fed’s Aggressive Approach

Source: American Consequences
by C Scott Garliss

“The pace of new hires isn’t slowing down; in fact, April’s job gains exceeded Wall Street’s estimate. And despite lower expectations when compared with March, the numbers held steady. Considering that the U.S. Bureau of Labor Statistics’ (‘BLS’) Job Openings and Labor Turnover Survey data recently hit a series high, the pace of employment growth shouldn’t come as a surprise. The BLS’s nonfarm payroll data showed 428,000 new hires for April compared with the expectation of 380,000. (Last month’s 431,000 figure was lowered to 428,000.) The numbers tell us that the domestic economy continues to experience steady growth and the job market remains tight. More people working means that more individuals have money in their pockets. Typically, the change implies more resources for spending on all types of goods, driving demand higher. And when supply can’t keep up, prices rise.” (05/10/22)