April 8

4/8 – On Friday, the Labor Dept reported that U.S. employers added 303,000 net new jobs in March – an incredibly high number at this “mature” point in an economic recovery. It was the 4th straight month with employment gains above 250k. By comparison, the U.S. economy managed just 166,000 new jobs per month pre-pandemic in 2019. Moreover, the unemployment rate dropped from 3.9% to 3.8%, and has now been sub-4% for 26 straight months – the longest stretch since the late 1960s. Remarkably, this is happening at a time when interest rates are relatively high, and inflation is subsiding. High interest rates were expected to kill job growth. A stronger-than-expected labor market could increase spending power and fuel further inflation. But a growing number of economists are saying that the jump in immigration has raised the supply of available workers without pressuring wages higher.