U.S. Unemployment Rises to 3.7%

Joshua Ramos
Government of China Tried To Obtain Internal Info From Federal Reserve: Report
Source: Investopedia

Earlier this week saw the White House noting employment as strong data against a recession. Today, that comment takes a bit of a hit, as the U.S. unemployment rate rises to 3.7%.

With the Federal Reserve raising interest rates yet another 75bps this week, all eyes are on how the economy will respond. The labor department has just issued a report that shows American employment has taken a small downturn.

Interest Rate Consequences Incoming?

Reported initially by The Guardian, the department has announced that the unemployment rate has risen to 3.7%. Although this does stand as an increase, it remains close to a 50-year low according to the publication.

The FOMC met earlier this week in what resulting in the previously stated interest rate hikes. This was done in an effort to battle inflation, and slow investment, with many predicting a recessionary state incoming.

Federal Reserve
Source: Pixabay

The White House issued a statment against a recession, noting the job market’s strength. Consequently, econmist have levied that the rising interest rate hikes could, eventually, impact employment.

This is the most aggresive the Fed has been in decades, but it has yet to take its toll on the American job market. Wether or not that changes remains to be seen, but 2022 is proof that there is still sustainability in U.S. employment.

The Guardian reported, “monthly job growth has averaged 407,000 thus far in 2022, compared with 562,000 per month in 2021. In 2019, before the coranavirus pandemic struck the US, job gains averaged 164,000 a month.”

FED Chair Jerome Powell States Need for ”Ongoing Rate Increases"
Source: TIME

Despite the actions of the Fed, the job market remains strong. As the publication reported the bureau of labor statistics indicated there where two open job positions for every unemployed person seeking work.

Only time will tell, however, how the job market continues to respond. As many experts have stated that consequences for the actions of the Fed will arrise. Sooner, or later.