The U.S. job market influenced by election politics and stock market maneuvers
Not long ago, in fact just a few months back, a rise in unemployment in the U.S. beyond 4% was the wish of large and medium American investors.
Low unemployment and a hot job market with increased employment and rising wages were the hallmarks of Joe Biden’s economy, and his enthusiasm for job creation made him one of the most successful presidents in U.S. history. A slowdown in the employment wave means a slowdown in the financial cycle of wage payments and receipts by employers and workers, which leads to reduced inflation.
The golden point of inflation is understanding the reality that workers’ wages are an expense that employers pay, and it’s a cost similar to the daily expenses of citizens. Rising wages can be a significant factor in increasing inflation if all the factors causing this increase are not controlled.
In any case, Jerome Powell, the Federal Reserve Chairman, has repeatedly pointed out the hot job market and its impact on inflation in recent months. The first signs of slowing job growth led the Federal Reserve to refrain from altering interest rates as inflation fell below 4%. Now, everyone is waiting for the first interest rate cut, with unemployment in the U.S. now exceeding 4%.
A 2.3% increase in unemployment created a wave of news that sparked fears of an economic recession.
It soon became clear that these fears were unfounded, but some statistics indicate concerns among a specific segment of the workforce.
The New York Federal Reserve, in its recent survey, found that the number of Americans considering a new job, whether employed or not, has risen from below 20% to over 28% compared to last year.
Expectations of becoming unemployed have also increased in another survey, with 44% of respondents anticipating losing their jobs. There is no sign of a recession occurring in the U.S.; the country’s economic growth has outpaced other industrial nations, and under normal circumstances, this level of unemployment was actually the wish of investors and the Federal Reserve.
A wave of negative news using these statistics, which became widespread to shock the stock market, led to the infamous Black Monday, representing only part of the tensions imposed on the mindset of American workers.
The portrayal of the current state of the U.S. economy as bleak, a crucial tool in Republican election campaigns, has undoubtedly played a significant role in instilling fear and anxiety among a segment of the American workforce. Workers and employees, which include all of us, need maximum assurance and peace of mind.
Destructive politics and deceitful profiteering exhaust and incapacitate the workforce.