The U.S. Labor Department’s recent job growth report showed signs of slowing, but the labor market is still on track to recover.
According to the August report, 315,000 jobs were added, a dip from the 526,000 seen in July. Additionally, the unemployment rate saw a slight uptick to 3.7%.
However, economists predicted a slowdown in job growth as the economy steadies itself following the post-vaccine boom. Up until August, the labor market saw consistent growth as consumer and employer demand skyrocketed.
Although this slowdown would normally cause alarm, the post-pandemic economy has been nothing short of turbulent. Even in the wake of a potential recession, the slowdown in job growth comes as job openings exceed job seekers.
The Federal Reserve’s method of raising interest rates has allowed the job market to cool down, alleviating the pressures of inflation without tipping the scale over into the pits of a recession.
“I think stability is very welcome right now for the economy,” said Michelle Meyer, chief U.S. economist for Mastercard.
“If we have a glide path there, if we take these steps from 500,000 jobs to 300,000 to 200,000, that’s a better outcome than if we have a dramatic shock where suddenly next month we have negative job growth.”