While unemployment in Spain is risingthe US labor market surprises the world by announcing the exit of the unemployment lines of 528,000 workers. All this in a context marked by extremely high inflation and the announcement of the onset of recession by many economists.
According to data provided by The White House for ABC Friday, August 5, US unemployment rate drops to 3.5%this figure being the lowest since the start of the COVID-19 pandemic in 2022.
After two quarters of economic contraction (the indicator used by the United States to detect a recession), it was expected during this month of July the creation of 250,000 new jobs. This figure of half a million new jobs is surprising and reveals the America’s ability to create jobs. It should be remembered that this country during the coronavirus crisis lost a total of 20 million jobs.
Currently, in the United States, there are approximately 5.7 million unemployed, according to official data provided by the government of Joe Biden. In this calculation, the Labor Department registers 1.1 million workers as long-term unemployed. In other words, these are the people who have not found a job for at least 27 weeks.
By group, those who occupy the unemployment lists the least are women with 3.1%, followed by whites with 3.1% and Asians with 2.6%. On the contrary, blacks continue to be the most numerous, with 6%.
How US But Data Affects Our Economy
Due to the good figures released by the US government, the Federal Reserve should continue to raise interest rates. The FED, which is the North American central bank, has already raised interest rates by 3/4 percentage points on July 27, 2022. The objective is to freeze the economy and reduce the debt to save itself. ensure that inflation, currently at 9%, comes down and does not continue to rise unchecked.
So far in 2022, the Biden administration has been the fourth raise he has made. Thus, the US economy, a reflection of the global economy, contracted between April and June for the second consecutive quarter by 0.9% over one year. With these data, we can already speak of a technical recession. To this figure, we must add 1.6% year on year compared to the months of January and March.
Although the data on the US economy is bad, helped by the shrinking economy and the fall in gross domestic product (GDP), the White House does not think so. Although the data shows it, employment continues to grow in the United States, which is a positive sign.
Leading economic experts and even Fed Chairman Jerome Powell assume that even if the US economy is seen to be weak, it is too early to talk about an economic recession. remember that during the coronavirus crisis, the economy was completely paralyzed and return this data. In March 2020, the Department of Labor recorded an increase in unemployment data of 22 million workers, who succumbed to an unprecedented recession. A fact that indicates the difficulty of recovering from something the world was not prepared for.
Faced with this economic map, the US government launched aid in the millions and the FED lowered interest rates, which caused a surprisingly rapid “partial” recovery.
Finally, from the government, they point out that the sectors that need the most jobs are the service and transport sectors, due to delays in supply.