Cheering for 3.5% unemployment rate?
On August 5th, 2022, the United States Bureau of Labor Statistics (BLS) released July non-farm payrolls. US employers added more than half a million jobs in July, more than twice as many as forecasters had expected. Despite the concerns of a possible recession and high inflation, the July unemployment rate of the US fell to 3.5%, a half-century low also seen just before the pandemic in early 2020. The US has now replaced all of the jobs that were lost in the early months of the pandemic. It seems like the job market has already recovered and the economy is still growing. President Biden even celebrated the milestone at the White House: “Today, there are more people working in America than before the pandemic began. In fact, there are more people working in America than any point in American history.” But does the low unemployment really tell the whole story or is it the time cheering for 3.5% unemployment rate?