Slowing job growth makes clear that the Fed has waited too long to cut interest rates
Below, EPI economists offers their insights on the jobs report released this morning, which showed 114,000 jobs added in July. Read the full thread here.
From EPI senior economist, Elise Gould (@eliselgould):
The uptick in unemployment will likely get a lot of attention today because the Sahm rule was triggered, a measure developed by @Claudia_Sahm that may signal a recession. It’s notable that the uptick in unemployment in July was mostly due to a rise in labor force participation.
— Elise Gould (@eliselgould) August 2, 2024
Employment among those 25-54 years old rose among both men and women in July. Men’s prime-age EPOP hit its highest level in this recovery. At 86.6%, it’s just 0.1 percentage points shy of it’s pre-pandemic level. Women’s prime-age EPOP continues to remain historically strong. pic.twitter.com/JiLEkBUW14
— Elise Gould (@eliselgould) August 2, 2024
Nominal wage growth continues to edge down, falling to 3.6% year over year, its lowest in two years. While more recent comparisons are more volatile, the deceleration is clear across all measures. There is no evidence of inflationary pressures coming from the labor market. pic.twitter.com/91rHpwQqnq
— Elise Gould (@eliselgould) August 2, 2024
From EPI economist, Hilary Wething (@hilweth):
Today’s #jobsreport really shows the cost of the Fed’s inaction. Unemployment ticked up and payroll growth is sluggish. It doesn’t have to be this way.
— Hilary Wething (@hilweth) August 2, 2024
Enjoyed this post?
Sign up for EPI's newsletter so you never miss our research and insights on ways to make the economy work better for everyone.