At first glance it appears that job growth and wage growth are trending down year over year. However, when compared against the Federal Reserve’s inflation target for economic growth, a more positive trend can be identified. Both job and wage growth remain at rates above that which would signify inflationary risks.
The implications of job and wage growth, while below historical trends, remaining above the Federal Reserve’s target for inflationary growth are that the US economy is still doing well in comparison to goals set by the Fed. Working individuals have greater job security, and wage increases, while slower than before, are maintaining a steady rate in order to maintain a healthy rate of inflation.
Bullet Points:
• Job growth trending down, yet still well above Federal Reserve’s inflation target
• Wage growth also trending down, yet still well above Federal Reserve’s inflation target
• Implications include greater job security & steady wage increases to maintain healthy rate of inflation
You can read this full article at: https://www.housingwire.com/articles/labor-market-is-moderating-gracefully-but-remains-too-hot-for-the-feds-like/(subscription required)
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