The "Are we in a recession?" nonsense was ended thunderously in the negative with Friday's spectacular July jobs report.
America’s employers added a stunning 528,000 jobs last month despite raging inflation and anxiety about a possible recession, restoring all of the positions lost in the coronavirus recession. Unemployment fell to 3.5%, the lowest level since the pandemic struck in early 2020.
There were 130,000 more jobs created in July than there were in June, and the most since February.
The red-hot jobs numbers from the Labor Department on Friday arrive amid a growing consensus that the economy is losing momentum. The U.S. economy shrank in the first two quarters of 2022 — an informal definition of recession. But most economists believe the strong jobs market has kept the economy from slipping into a downturn.
Friday’s surprisingly strong report will undoubtedly intensify the debate over whether America is in a recession or not.
“Recession – what recession?” wrote Brian Coulton, chief economist at Fitch Ratings, after the numbers came out. “The U.S. economy is creating new jobs at an annual rate of 6 million – that’s three times faster than what we normally see historically in a good year. ‘’
Economists had expected only 250,000 new jobs in July.
GDP may have slowed down, but jobs are roaring ahead. Is it possible that Treasury Secretary Janet Yellen and Fed Chairman Jerome Powell might actually know what they are doing?