WASHINGTON (NEXSTAR) — Labor statistics show that the job market shrunk to its lowest levels since May 2021, however, the White House said that the economy is on the right path.
“Yet another good indication the economy is recovering from this pandemic economy,” White House Economist Heather Boushey said.
Boushey said for the first time in nearly two years that the number of job openings across the United States dipped below 10 million. This in turn could cool inflation-fueled but competitive wages.
“There’s a better alignment between the demand for workers and workers available,” Boushey said.
Even with fewer available jobs, labor statistics show that employers are still hiring and that could be another positive sign that the economy can make a smooth landing. But some outside economists are less optimistic. Stephen Juneau with Bank of America said that the U.S. is a long way away from a balanced labor market,
“We still have some room to go,” he said. “We’re still of the view that you’re going to need to see more pain in the labor market you’re going to need to see a mild recession in the U.S. labor market in order to bring that inflation in balance.”
In order to reach that mark, the Federal Reserve chairman is vowing to continue to raise the cost to borrow but there are concerns about that too. Benjamin Dulchin with the Fed Up Campaign, an organization that claims it is holding the Federal Reserve Bank accountable, said that the current policies hurt workers.
“Soft landings are hard to achieve,” Dulchin said. “The fed is playing a very dangerous game.”
The job numbers from March will be released on Friday. They will determine the Fed’s next move in dealing with this.