"Federal Reserve mouthpiece": Low employment growth may become the new normal, but it is especially fragile in the context of war

MeNews · 2026-04-07T05:46:48+00:00

ME News Report, April 4 (UTC+8), "Federal Reserve spokesperson" Nick Timiraos wrote that 178k new jobs were added in March, reversing the sharp decline seen in February. The unemployment rate also fell to 4.3%. However, some details are less optimistic, as wage growth for ordinary workers slowed to the lowest year-over-year increase in five years since the pandemic recovery. Averaging these two volatile months reveals a clearer potential trend: an average of only 22.5k new jobs per month. Two years ago, adding 22.5k jobs per month would have been cause for concern; today, such a level might still be considered acceptable. Federal Reserve officials are still working to explain this change. San Francisco Fed President Daly wrote on Friday, "It's not easy to help the public understand that an economy with zero job growth can still be consistent with full employment." As the new supply shocks arrive again, the situation

MeNews

2026-04-07 05:46:48

ME News message, April 4 (UTC+8), in an article by “Federal Reserve megaphone” Nick Timiraos, it was noted that March added 178k jobs, reversing the sharp decline in February. The unemployment rate also fell to 4.3%. But some details are less encouraging: wage growth for ordinary workers slowed to the lowest year-over-year growth rate in five years since the post-pandemic recovery. Averaging these two more volatile months shows the underlying trend more clearly: the average monthly net job gains are only 22.5k positions. Two years ago, adding 22.5k jobs per month was enough to raise alarm; but now, that level may still be viewed as acceptable.
Federal Reserve officials are still working to explain this shift. San Francisco Fed President Daly wrote on Friday: “It is not easy to help the public understand that an economy with zero job growth is still consistent with full employment.” With fresh supply shocks once again on the way, this situation is particularly fragile. If the Iran war continues, high fuel costs or shortages of commodities may squeeze businesses and consumers, leaving the labor market without a cushion to absorb the shock. At the same time, concerns about inflation may weaken the certainty of rate cuts, further limiting the Fed’s policy room. (Source: ChainCatcher)

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.