America’s Birthday Is Opportunity To Celebrate Free Market Economy
June's jobs report is a one-off following several months of very strong jobs days, and it doesn't reflect the state of the underlying economy.
June’s jobs report is a one-off following several months of very strong jobs days, and it doesn’t reflect the state of the underlying economy.
Only 57,000 jobs were created last month, while the unemployment rate fell to 4.2%, and the labor force participation rate fell to 61.5%. The job creation in previous months was also revised downward.
June’s jobs market was dealing with temporarily elevated gas prices and transient inflation due to the war in Iran, which is now ending. As oil prices and gas prices fall, Americans will have more disposable income to create jobs. The price of a barrel of oil is already back to its pre-war average.
The falling labor force participation rate will also reverse as Republican welfare work requirements take effect. So far, Montana, Nebraska, and Georgia have implemented Medicaid work requirements, with other states following suit by 2027. A Towson University study estimates Medicaid work requirements will boost labor force participation by a massive 1.2 percentage points, bringing the rate back to the heady days of the first Trump administration.
Today’s jobs report should take potential Federal Reserve interest rate hikes fully off the table, especially as inflation falls. Commentators calling for rate hikes are looking through the rearview mirror, while Federal Reserve Chairman