Job Positions | Weekly Extract

08.08.2022

Jobs: according to the latest report from the U.S. Bureau of Labor Statistics, total nonfarm payroll employment increased by 528,000 in July, and the unemployment rate fell to 3.5%.

Employment growth was led by gains in leisure and hospitality, business services, and health care. Both total nonfarm employment and unemployment have returned to their pre-pandemic levels of February 2020.

The biggest problem today is the large amount of money supply (read "dollars"). To counteract this, the Fed continues to choose to raise interest rates and purchase programs to eliminate excess cash in circulation, which may culminate in a contraction of available jobs, in the event that debts become a heavier burden on businesses and they need to free up funds by cutting jobs.

Neil Dutta, head of U.S. economic research at Renaissance Macro Research LLC, warns of the increased possibility of a more hawkish Jerome Powell:

"This jobs report is consistent with an inflationary boom. The Fed has a lot more work to do and, in a strange way, that the Fed needs to be more aggressive in raising rates makes the hard landing scenario more likely."