Biden Economy Shows No Signs Of Weakening After Another Strong Jobs Report

The US economy added 390,000 new jobs last month, as the unemployment rate remained at 3.6%. People continue to spend, and the economy is rolling along.

Via: The AP:

US employers added a healthy 390,000 jobs in May, extending a streak of solid hiring that has bolstered an economy under pressure from high inflation and interest rates.

Last month’s gain reflects a still-healthy job market despite concerns that the economy will weaken in the coming months as the Federal Reserve steadily raises rates to fight inflation. The unemployment rate was unchanged at a low 3.6%, the Labor Department said Friday.

Dean Baker tweeted about the debate over whether inflation is due to underlying causes or supply chain shocks:

The deceleration of wage growth suggests that the inflation problem is more related to supply issues than the Republican claim that Biden caused inflation through spending. The supply chain issues are related to COVID, which remains a crisis in China, along with the Russian invasion of Ukraine.

Democrats should continue to treat inflation as their top priority, but once the supply chain issues resolve, inflation could come down, and the US economy launch into a strong growth period.

Republicans didn’t get the bad economic news they were hoping for in the new jobs report, so they have returned to endlessly whining about baby formula.

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