As the Fed’s rate hikes take effect, they will make it increasingly expensive for consumers and businesses to borrow, spend and hire.
In addition, the vast economic aid that the government had been supplying to households has expired.
And Russia’s invasion of Ukraine has helped accelerate inflation and clouded the economic outlook. Some economists warn of a growing risk of recession.
“There’s no getting away from the fact that the payrolls number could and would likely be higher, perhaps substantially higher, if employers were having more success finding the workers they want and needed,” Mark Hamrick, a senior analyst with Bankrate, told The Post.
“In other cycles, restraint on payrolls growth would be seen as indicative of weak demand. As with so many things, the pandemic has turned the world upside down.”
Hamrick said that the 428,000 jobs added “is in line with expectations.”
“Labor force participation, or the gauge of those either working or looking for work, remains below pre-pandemic levels, depriving employers of candidates to fill jobs,” he said.
John Lynch, the chief investment officer for Comerica Wealth Management in Charlotte, sounded a cautiously optimistic tone, saying that the jobs report could be a sign of “easing inflation fears.”
“Today’s report is balanced and may prove to dampen the extreme volatility of recent days,” he said.
“We’re still not out of the woods, yet a clearing is visible.”