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Labor Department announces U.S. employers added 528,000 jobs in July

United States: The Labor Department made the announcement that United States employers added 528,000 jobs in July. That’s more than twice the number analysts had expected. This is great news, but it also indicates the Federal Reserve will keep raising interest rates, believing the market is too “hot.” It’s not too hot.

Professor, former Secretary of Labor, Co-founder Inequality Media-Robert Reich mentioned in the statement,”If you look deeper, you’ll see that the share of Americans working or actively looking for work fell in July to its lowest level of the year. Why? Presumably, because it’s not possible for more people to work – many potential job seekers are likely to forego full-time work due to the costs and hassles of childcare or eldercare. Plus, many jobs don’t pay enough to make work worth it.”

He further stated, wages did grow in July, they rose at a slower pace than inflation. Figures show that wages are up at an annual rate of 5.2 percent while inflation is rising at a rate of over 9 percent, meaning that the majority of the workers continue to get pay cuts. They would think that the stall in the size of the workforce as well as the decline in inflation-adjusted wages would make the Fed reluctant to raise interest rates further. But he fear the Fed is still wedded to the anacThe Labor Department made the announcement that United States employers added 528,000 jobs in July. That’s more than two times the number analysts had expected. This is great news, but it also indicates the Federal Reserve will keep raising interest rates, believing the market is too “hot.” It’s not too hot.

So beware. The Fed is likely to continue to increase interest rates when it meets in September – making it more expensive for everyone (especially lower-income Americans) to borrow and increasing the likelihood of a recession down the pike. This will be a major mistake.

Furthermore, the economy has now recovered all 22 million jobs in the month of March and April 2020 when COVID-19 slammed in the United States of America.

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