Powell memo
Powell has focused on the outsized numbers of job openings compared with the ranks of the unemployed, a mismatch of historic proportions with nearly two vacancies for each person who is unemployed. "We have unwound the surge that we saw toward the end of last year." yet despite that we are seeing a moderation in average hourly earnings," said Ellen Gaske, lead economist at PGIM Fixed Income. "Today's employment report is consistent with a soft-landing scenario. At an average 0.3% over the last three months, the pace is the lowest in a year. Graphic- The jobs hole facing Biden and the Fed: Įven more to Powell's liking, the monthly pace of wage growth appears to be easing.
That means more household income and, all things equal, a more resilient economy. The country may even get back to its prior trend level next year. economy a step closer to recovering its pre-pandemic employment level, with just 1.2 million remaining positions to reach that goal - and just 500,000 in the private sector. Despite the discussion about businesses struggling to hire, the fact that payrolls rose by more than 400,000 for a 12th straight month is a plus. When all is said and done, the Fed wants more people working one month to the next. Still, economists said the report may show the start of the sort of adjustment the Fed chief hopes to see: