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The unemployment rate in the United States falls back to 3.5%, its February 2019 level, just before the pandemic.
US employment remains strong despite the economic downturn. According to Labor Department figures, the unemployment rate was 3.5% in December, down from 3.6% a month earlier. At the same time, companies and administrations created 223,000 jobs. It is a little less than in November, but it is much better than expected, say the experts.
The other side of the coin, for two years, there have not been enough workers in the United States. Four million people are missing, Fed Chairman Jerome Powell said in his last speech.
This lack of labor forces employers to increase wages to attract new recruits. Problem, this increase in wages contributes to ignite inflation, companies passing it on to selling prices. The Fed should continue to raise rates to slow consumption and ease pressure on prices. At the risk of weighing on employment, or even causing a recession.