Numbers came out earlier this month to show that almost 200,000 jobs were created in December. That number, along with November and October's revised numbers, brought the 3-month average to 365,000; this is a slowdown from earlier in the year with the average going over 500,000. A large factor in this decrease is that COVID, specifically the new Omicron variant, has increased its spreading, squeezing an already tight labor force.
The increase in wages has almost doubled since 2020 hitting 4.5%. This, unfortunately, has helped fuel inflation at an uncomfortable pace. Some workers have had the benefit of a wage increase exceeding inflation; the leisure and hospitality industry saw a 13.5%. With the Federal Reserve getting ready to raise interest rates to combat inflation, labor markets are anticipated to drop.
Incoming numbers on job creations and ADP's monthly survey of employers will answer some questions, although it is likely the labor market will be taking a hit and, overall, jobs were lost in the past month.
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