In the wake of high interest rates, the US job market sees a slowdown with only 175,000 jobs added in April 2024, marking the smallest increase in six months. President Biden views the figures as indicative of a strong economy, despite increasing unemployment rate and ongoing inflation concerns.
In April 2024, the US job market experienced a slowdown, adding only 175,000 jobs, the least in six months, with the unemployment rate slightly increasing to 3.9%. This development occurred amidst the Federal Reserve’s ongoing high interest rate policy aimed at curbing persistent inflation. Sectors such as leisure, construction, and government saw reduced job growth, while healthcare and retail remained robust. Despite the slowdown, this period marked the 40th consecutive month of job gains across various sectors including healthcare, social assistance, and manufacturing.
President Joe Biden referred to these job figures as evidence of a robust economy under his administration, emphasizing the job creation during his tenure and plans to address housing and healthcare costs. The labor market’s performance is set against the backdrop of high inflation and the Federal Reserve’s cautious approach to adjusting interest rates. However, recent developments have sparked discussions about the possibility of future rate cuts.
Meanwhile, the Czech Republic’s central bank continued its trend of reducing key interest rates, with the fourth consecutive cut bringing it down to 5.25%. This decision aligns with decreasing inflation, which has fallen to 10.7% in 2023 from 15.1% in 2022, and a modest economic growth of 0.4% in the first quarter of 2024. This approach contrasts with the cautious stance of other central banks, including the Federal Reserve and the European Central Bank, which are closely monitoring inflation trends before making further policy adjustments.