Resilient U.S. Job Market Defies Recession Predictions Amid Cooling Conditions

InflationMoney Matters
Written By Jennifer Joslyn

The job market in the United States has shown signs of cooling over the summer, but it remains strong enough to dispel fears of a recession despite higher interest rates. In July, U.S. employers added 187,000 jobs, slightly below economists' expectations, but the unemployment rate dropped to 3.5%, indicating resilience in the job market. The Federal Reserve's 11 interest rate hikes since March 2022 have not significantly hindered hiring, and more Americans entered the job market last month, relieving pressure on employers to raise wages.

While the job market remains robust, some sectors, like temporary help jobs and manufacturing, experienced declines in employment. Overall, economists are increasingly optimistic that the U.S. economy can achieve a "soft landing" with controlled inflation and stable growth. However, businesses continue to struggle to find workers in a tight labor market.

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Jennifer Joslyn
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