FILE - Job seekers attend the JobNewsUSA.com South Florida Job Fair held at the Amerant Bank Arena on June 26, 2024, in Sunrise, Florida. The number of "discouraged workers" jumped 21% in a month, according to the Labor Department.“Is there any cause for worrying when you have a quarter million new jobs?” Weiler said. “Worry may be a strong word, but the aggregate picture sort of blinds you to certain aspects of the labor market.
Businesses, burned from their rehiring struggled during the pandemic, held onto their workers but weren’t adding as many new workers. Sojourner said there could be light at the end of the tunnel for discouraged workers, or folks who have been out of work for months on end. The Fed has a dual mandate to foster full employment and low inflation. It’s clear the Fed has turned its attention from taming inflation to supporting the job market.