FOR IMMEDIATE RELEASE
May 6, 2022
Credit Union National Association (CUNA) Senior Economist Dawit Kebede, PhD, issued the following statement in response to the Labor Department’s April Employment Situation:
“The economy added more jobs in April than expected fueled by employment gains across several sectors. Leisure and hospitality added more jobs as consumer demand for travel and recreation continues to increase as COVID fear lessen.
“The labor force participation rate has declined 0.2 percentage points compared to the previous month, indicating a slight decrease in labor supply. Participation is expected to go up if the pandemic becomes less of a health concern. Strong demand for hiring, coupled with low labor supply, continues to increase wages, adding more inflationary pressure. A persistent imbalance in labor demand and supply may lead to a wage-inflation spiral.
“Strong job gains and a low unemployment rate implies that consumer demand and spending will continue to be strong. Consumer spending drives two-thirds of economic activity.”
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 130 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.