The US economy only created 175,000 new jobs last month, and the 3.9% unemployment rate increased.

Read Time:3 Minute, 18 Second

An “appropriate size number”

It appeared as though there was an economic acceleration underway at the beginning of 2024. The figures on inflation continued to rise, expenditure was high, wage growth did not slow down as anticipated, and job growth exceeded that of 2023.

However, there were signs of an impending cooling off. In terms of the labor market, particularly, wage growth was slowing, employment activity was slowing down, fewer jobs were opening up, and fewer people were leaving their jobs.

“This [175,000 net gain] is a right-sizing number, not a doom and gloom number,” stated Jane Oates, a former Labor Department official who now works as a senior policy consultant for the nonprofit organization Working Nation, which promotes employment education.