|
Workforce activity increased slightly in the first two weeks of
the month, according to the firm which tracks shift work in real
time. It mostly declined during the prior three months.
Particularly notable, the firm said, was an increase in demand
for workers in retail, the first such increase since the start
of the year.
That could be good news for Fed Chair Jerome Powell. On
Wednesday he told U.S. lawmakers the Fed was committed to
bringing down too-high inflation, with a plan to raise borrowing
costs high enough that demand for labor, goods and services
subsides to levels more in line with supply.
Continued strength in the labor market casts doubt on the view
of those like former New York Fed President Bill Dudley who say
a recession in the next year or so is inevitable. And it may
provide some grist for Fed policymakers who believe a soft
landing for the economy is possible, if difficult.
Powell on Wednesday said he does not see current recession risks
as being particularly elevated, though a downturn will be
"challenging" to avoid, especially because so many of the
factors putting upward pressure on prices are beyond the Fed's
control, such as Russia's war and China's COVID-19 lockdowns.
But Powell also said he believes the labor market is
"unsustainably hot," suggesting that he would welcome some
cooling.
The U.S. Labor Department releases its jobs monthly report in on
July 8.
(Reporting by Ann Saphir; Editing by David Gregorio)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
