US Economy Adds Record Number of Jobs, Ready to Handle Higher Rates
Updated: Jun 8, 2022
The US Economy added another 390,000 jobs in May to an already growing economy. Leisure and hospitality businesses once again saw the biggest increase in payrolls, with firms adding 84,000 payrolls. Currently, there are about two job openings for every unemployed person.
Image Credit: AP Photo/Adrian Sainz, File
Many corporations are on a hiring spree because the purchasing power of many consumers remains high in spite of the high inflation. Most American consumers' financial status has been boosted by increased pay and huge savings accumulated by higher income households during the pandemic.
The labor market has been phenomenal for workers who are enjoying an almost unprecedented bargaining power. Workers are quitting their jobs for high paying jobs at record highs.
"The labor market is still strong, with near record-high labor demand and record low layoffs," he said. "This doesn't look like a labor market about to tip into recession." said Daniel Zhao, senior economist at Glassdoor.
The economy is "well-positioned to handle tighter monetary policy," Fed. Chairman Jerome Powell said in early May as the Fed increases interest rate to lower inflation.