The Great Reset Diary 2022-

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12/2/2022: November Jobs Report Remains Strong
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12/2/2022: November Jobs Report Remains Strong

Unemployment rate is unchanged at 3.7%

Yun-Fang Juan
Dec 3, 2022
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12/2/2022: November Jobs Report Remains Strong
greatreset2022.substack.com

The November jobs report is out. 263,000 jobs were added in November, and the unemployment rate was unchanged at 3.7 percent. The labor force participation rate of 62.1% was little changed from October. The labor force participation rate is still 1.3 percentage points below the value pre-pandemic in February 2020.

In November, average hourly earnings have increased by 5.1% YoY and 0.6% MoM. The same numbers for October are 4.7% YoY and 0.4% MoM. The wage growth remains strong and is well above the pre-pandemic rate of 3%. This wage growth was highlighted in Powell’s speech earlier this week as a driver for inflation. The Fed believes they need to keep the interest rate high at potentially 5+% to dampen the demand for labor and to slow down the wage growth to fight inflation.

I have repeated the same point over and over again but it appears that the real issue here is the (lack of ) supply for labor. As the labor participation rate indicates, America simply has fewer people working currently compared to before the pandemic and American employers still have a lot of unfilled open positions. The Fed can keep raising rates to kill the demand for labor but high interest rates very likely will also kill the economy. I hope they figure out a solution to balance the labor situation without killing the economy. Nobody wants the economy killed. 

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12/2/2022: November Jobs Report Remains Strong
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