May Jobs Report Reflects a "Goldilocks" Labor Market
Dr. Bernard E. Anderson
Whitney M Young, Jr. Professor Emeritus, The Wharton School, University of Pennsylvania
Senior Economic Advisor, National Urban League
With 390,000 jobs added in May, the latest Jobs Report reflects a “Goldilocks” labor market; not too hot, not too cool.
The economy is humming along at a moderate pace driven by high consumer demand… however, if trends continue in the direction reflected in the May report, and there is little relief from supply chain bottlenecks, it’s likely that additional Fed interest rate increases will spark a mini recession in 2023.
The U.S. has never had a situation in which inflation exceeded 4%, the unemployment rate was less than 4%, and the Federal Reserve raised interest rates without sparking a recession.