Key Takeaways from the Latest Jobs Report (Macro News for March 16, 2024 – March 22, 2024)

U.S. unemployment increased to 3.9% in February 2024 according to the most recent labor market data. The increase was unexpected given that the consensus forecast was for the economy to add 200,000 new jobs in February and instead it added 275,000 new jobs. Economists anticipated that the unemployment rate would remain unchanged at 3.7% but instead it ticked slightly higher by 0.2%.

July Jobs Report: U.S. Payroll Growth Totaled 187,000, Lower Than Expected (Macro News for August 12, 2023 – August 18, 2023)

July 2023 Labor Department job growth numbers indicate the economy is slowing down. The economy created 187,000 nonfarm jobs in July, which is only 2,000 more than the previous month. However, the unemployment rate fell slightly to 3.5% and approached its lowest rate in over 50 years. When discouraged workers and part-time workers were added in as unemployed, that unemployment rate fell slightly to 6.7%.

The U.S. Economy Added 339,000 Jobs Last Month, Soaring Past Expectations–Again (Micro News for June 3, 2023 – June 9, 2023)

According to the monthly Bureau of Labor Statistics report, the U.S. economy added another 339,000 jobs in May 2023. The new jobs exceeded the consensus forecast of 190,000 expected by economists. However, despite the job gains, the unemployment rate increased from 3.4% to 3.7%. The BLS data show the increase was due to an increase in the prime age labor force participation rate which measures labor force participation for workers who are between 25 and 54 years old.

Former Fed Chair Bernanke Says There’s More Work Ahead to Control Inflation (Macro News for May 27, 2023 – June 2, 2023)

Ben Bernanke, former chair of the Federal Reserve, stated his belief that the Fed will need to increase interest rates even more to tame inflation. The contractionary monetary policy will need to be significant enough to affect the tight labor market, which is currently driving inflation. Bernanke's comments are included in a paper authored with noted economist Olivier Blanchard.