The Non-Farm payroll has added 850k jobs, but sluggish growth has put back the unemployment rate to 5.9%. Hence, the job market performance is rather lacklustre as compared to a year ago in June 2020, where jobs placement has surge pass a million mark.
Last month, the Federal Reserve has mentioned that the raising of rate may come as soon as 2023 but the asset purchase program remain unchanged as the Federal Reserve wish to have diverse data to chart their next course of action in which job data is the crucial. Simply put, the unemployment rate must return to below 3.1% and the constant growth of jobs added above the 1 million marks.
Despite strong data in the month of March 2021 where NFP reported over a million-job created, the expectation is still way below the 10 million jobs created back before pre-Covid in March 2021. Furthermore, the recovery momentum slowed down after June 2020. Hence, the Federal Reserve may remain status quo on their interest rate and asset purchase programme.
means that the stimulus package has push back workers from engaging in any form of work and workers have more bargaining power to choose what kind of jobs they are into.