The labor market in the United States is continuing to remain strong, even as the Federal Reserve has taken action to slow economic growth and inflation by raising interest rates. This was evidenced last week when fewer Americans filed for unemployment benefits.
This news reflects positively on the current state of employment in America, suggesting that employers are doing well enough financially to maintain their staffs without having to resort to layoffs or furloughs. It also suggests that workers feel secure enough in their positions not only stay employed but also have faith that they will be able to find a job if needed.
It appears likely this trend will continue into 2019 as long as businesses can keep up with rising costs associated with higher interest rates and other factors such as tariffs imposed by President Trump’s administration on imported goods from China and elsewhere around the world. The strength of American labor markets could be further bolstered if wages start increasing more rapidly than inflation, allowing people greater purchasing power which would help stimulate consumer spending across all sectors of our economy – something we’ve seen little evidence of thus far despite an overall low unemployment rate nationwide.
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