WASHINGTON (NEXSTAR) — Labor statistics show the job market has shrunk to its lowest level since May 2021, but the White House said the economy is on track.
“Another good indication that the economy is recovering from this pandemic,” said Heather Boushey, White House economist.
Boushey said job vacancies in the United States fell below 10 million for the first time in nearly two years. This in turn could cool inflation-driven but competitive wages.
“There’s a better match between the demand for labor and the available labor,” Boushey said.
Even with fewer jobs available, jobs statistics show that employers are still hiring and that could be another positive sign that the economy is about to have a smooth landing. However, some outside economists are less optimistic. Bank of America’s Stephen Juneau said the US is far from a balanced labor market,
“We still have room for improvement,” he said. “We still think you need to see more pain in the labor market, you need to see a mild recession in the US labor market to balance that inflation.”
In order to reach that mark, the Federal Reserve Chairman is promising to further raise the cost of borrowing, but there are concerns on that as well. Benjamin Dulchin of the Fed Up Campaign, an organization that claims to hold the Federal Reserve Bank accountable, said the current policy is hurting workers.
“Soft landings are hard to achieve,” Dulchin said. “The Fed is playing a very dangerous game.”
The job numbers for March will be published on Friday. They will determine the Fed’s next move in dealing with this.
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