FOR IMMEDIATE RELEASE
August 5, 2022
Credit Union National Association (CUNA) Senior Economist Dawit Kebede, PhD, issued the following statement in response to the Labor Department’s July Employment Situation:
“The US economy added 528,000 jobs in July, double the size of expected amount, recovering all employment lost during the pandemic. Private sector employment exceeds the February 2020 level by 629,000. The unemployment rate also fell back to pre-pandemic level at 3.5%.
“The labor market remains very tight. There are more job openings than the number of unemployed people and quit rates are remarkably high. The labor force participation rate, expected to increase as COVID concerns recede, declined slightly in July. This sustained imbalance in labor demand and supply will lead to an increase in wages adding more inflationary pressure.
“The Federal Reserve will likely stay the course of interest rate hikes announced in its June Federal Open Market Committee projection, 3.4% by year end, despite recent reports of slowdown in consumer demand.”
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.