{"id":37661,"date":"2022-06-05T14:42:07","date_gmt":"2022-06-05T14:42:07","guid":{"rendered":"https:\/\/harchi90.com\/as-jobs-market-nears-total-recovery-economists-pray-us-wont-blow-past-full-employment\/"},"modified":"2022-06-05T14:42:07","modified_gmt":"2022-06-05T14:42:07","slug":"as-jobs-market-nears-total-recovery-economists-pray-us-wont-blow-past-full-employment","status":"publish","type":"post","link":"https:\/\/harchi90.com\/as-jobs-market-nears-total-recovery-economists-pray-us-wont-blow-past-full-employment\/","title":{"rendered":"As jobs market nears total recovery, economists pray US won’t ‘blow past full employment’"},"content":{"rendered":"
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The white-hot US job market cooled to merely red hot last month, a mixed blessing for workers worried about runaway inflation and the possibility of a recession.<\/p>\n

Employers added 390,000 jobs in May – down from the 428,000 added in April – and the unemployment rate remained stable, according to the latest report Bureau of Labor Statistics jobs report.<\/p>\n

While nearly all the private-sector jobs lost during the pandemic have returned, the pace of employment growth is noticeably slowing.<\/p>\n

The economy is starting to shift into a period of stable, steady growth, President Joe Biden said in an address<\/a> Friday after the announcement.<\/p>\n

\u201cWe should expect to see more moderation,\u201d Biden said. \u201cWe aren’t likely to see the kind of blockbuster job reports month after month like we have over this past year. But that’s a good thing. That’s a sign of a healthy economy. “<\/p>\n

A (near) full recovery<\/h2>\n

The US employment market has almost fully healed from the staggering losses suffered during the worst of the pandemic.<\/p>\n

“We are on the verge of a complete private-sector recovery, with 99% of private sector jobs lost in the pandemic now recovered,” Julia Pollak, chief economist at ZipRecruiter, tweeted<\/a> Friday.<\/p>\n

The unemployment rate in May held steady for the third straight month at 3.6%. The number of Americans out of work was about 6 million – similar to pre-COVID levels, the Labor Department reports.<\/p>\n

Still, more moderation is needed to avoid a downturn.<\/p>\n

Mark Zandi, chief economist with Moody’s Analytics, says<\/a> job growth needs to continue slowing – ideally to around 150,000 jobs this summer.<\/p>\n

\u201cThis will ensure the economy doesn’t blow past full employment, fan wage growth and exacerbate the high inflation,\u201d Zandi tweeted.<\/p>\n

In economic circles, “full employment” often refers to an ideal balance of jobs and workers, where unemployment is as low as possible without inflation accelerating out of control.<\/p>\n

When an economy goes past full employment, companies need to fight extremely hard over the limited pool of available workers. They keep raising wages but also keep raising their prices to compensate for the expense.<\/p>\n