FOR IMMEDIATE RELEASE
July 8, 2022
Credit Union National Association (CUNA) Chief Economist Mike Schenk issued the following statement in response to the Labor Department’s June Employment Situation:
“Nonfarm employment increased by 372,000 in June, in line with CUNA economists’ expectations. Overall additions were only modestly lower than the gains in both April (+368,000) and May (+384,000). April and May increases were revised down by 68.000 and 6,000 respectively.
“The unemployment rate held steady at 3.6% -- a reading that hasn’t moved over the past four months. The current rate also is in line with the 3.5% pre-pandemic jobless rate.
“Average hourly earnings increased at an annualized rate of 3.6% -- consistent with increases in both April and May. Obviously, a tight labor market increases the threat of a wage-price spiral, but these more modest wage increases in the past several months suggest policy makers may dodge that bullet.
“The labor force participation rate fell to 62.2% from 62.3% in May, and it remains well below the pre-pandemic level of 63.4%. The imbalance between labor demand and supply is a key concern, particularly in areas where there are more vacant jobs available than unemployed people.
“Importantly, nothing in the report suggests the Federal Reserve will waver from its commitment to aggressively raise rates in an effort to tamp down inflation expectations.”
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.