Good afternoon, this is Rachel Stevens reporting live for CNN Business. America’s Federal Reserve Chair, Jerome Powell, recently made the assertion in a news conference that the job market now looks the way it did before the Covid-19 pandemic. However, this claim is being questioned by ZipRecruiter’s chief economist.
Powell stated that various indicators suggest that the labor market has returned to pre-pandemic levels, with a ratio of job openings to unemployed job seekers now at 1.2 to one, down from 2 to 1 in the spring of 2022. Worker filings for unemployment benefits have also decreased, but have trended upwards since then.
In a recent interview, ZipRecruiter’s chief economist Julia Pollak disagreed with Powell’s assessment, stating that the job market is now in a “new normal” with key differences from 2019. Pollak mentioned that businesses are slower to hire and fire, and workers are slower to switch jobs due to factors such as high interest rates and risk aversion.
In other news, investors are expressing concerns over the potential collapse of the political center in France during upcoming parliamentary elections. President Emmanuel Macron called for snap elections after his party’s defeat by the far right in a recent vote for EU lawmakers. The possible rise of far-right populists in France could have significant implications for the country’s economy and government finances.
Looking ahead, here are some key events to watch for in the coming week:
– Monday: Earnings from Lennar and La-Z-Boy, remarks from Fed officials Patrick Harker and Lisa Cook.
– Tuesday: Interest rate decision by the Reserve Bank of Australia, US Commerce Department releases retail sales data.
– Wednesday: NAHB/Wells Fargo Housing Market Index for June.
– Thursday: Earnings from Accenture, Kroger, Darden Restaurants, Bank of England interest rate decision.
– Friday: Earnings from CarMax, S&P Global releases business surveys gauging economic activity.