The American economy created a little more jobs than expected in May, and despite slowing down in the tech sector, the labor force remains tight. The central bank has to do what it has promised, otherwise it will lose credibility.
Workers are wanted in the USA.
“In light of current market conditions and ongoing efforts to prioritize business areas, we will be extending our hiring freeze for new and replacement appointments for the foreseeable future and withdrawing a number of accepted offers” – the crypto trading platform Coinbase joins staff development on the brakes, and that shows how the American job market is doing at the moment.
All the so-called growth companies are facing headwinds in the face of rising interest rates and investors’ lower appetite for risk and have to prove that their business models not only work in cloud cuckoo land, but also in reality. Tesla, Uber, Microsoft, Twitter, Wayfair, Snap and even Facebook are also stepping on the brakes, either because they are being brought back down to earth with economic facts or because they are expecting lower growth due to high inflation and consequently also sluggish business.
The currents in the highly valued technology sector are notable, but they threaten to overstate macroeconomic developments, at least in the short term. Away from Silicon Valley and Wall Street, the recession that has been announced by many forecasters has not yet arrived.
Economic life pulsates in the streets of New York City, restaurants, airports and hotels are sometimes very busy, and even major events such as a band concert The Who at Madison Square Garden are back on the agenda. Production companies are desperately looking for qualified personnel. Statistically, an unemployed person in the US can still choose between two open jobs.
In May, the US economy added 390,000 jobs, continuing a year-long streak of strong growth, the Labor Department said on Friday. The unemployment rate remained at 3.6 percent and was thus historically comparatively low. This forces the central bank to raise interest rates significantly and reduce the money supply by downsizing the balance sheet.