Department of Labor reports unemployment approaching pre-pandemic levels.
The Bureau of Labor Statistics reported that 431,000 jobs were added to the U.S. economy in March and unemployment fell near pre-pandemic levels at 3.6%, signaling a strong labor market. Wage gains also increased in March, and the trend is expected to continue.
The job growth number did come up short of expectations, but other details of the report indicate underlying momentum. The unemployment rate is at its lowest since February 2020, the last month before pandemic shutdowns were instituted.
Economists say the March report gives the Federal Reserve the “green light” to be as aggressive as it sees fit in raising interest rates. In the near term, that means the economy may be entering another “good is bad” period. The scramble for labor is likely to keep upward pressure on the hottest inflation in 40 years and give the Fed confidence—justified or not—that it can tighten monetary policy without tipping the economy into a recession.
As the Lord Leads, Pray with Us…
- For officials in the Bureau of Labor Statistics as they evaluate the data and report on the health of the employment market.
- For Labor Secretary Walsh to seek God’s guidance as he oversees programs that support U.S. labor.
- With gratitude to the Lord for the improvement reflected in the jobs report.
Sources: Wall Street Journal, Bloomberg
