WASHINGTON (NEXSTAR) — Even as inflation continues to plague Americans, the latest jobs report shows the job market remains strong.
“My economic plan is moving this country in a better direction,” President Joe Biden said.
The latest U.S. jobs report shows the economy added 372,000 jobs in June. U.S National Economic Council Director Brian Deese said the U.S has now recovered all private-sector jobs lost during the pandemic.
“The strength of the job market recovery has meant more opportunity, higher wages for tens of millions of Americans,” Deese said. “It’s meant stronger household balance sheets. People have been able to save a little bit and that creates a more resilient economy.”
But even with job growth, recession worries still linger. George Washington University Economics and International Affairs professor Tara Sinclair thinks those fears are their own problem.
“If people really buy this message that a recession is coming, they may cut back on spending and that action of cutting back on spending could spur a recession,” Sinclair said.
Sinclair says the Federal Reserve’s priority is slowing down demand to better match supply, without triggering a recession.
“But they haven’t been so successful with that in the past, so there is a lot of concern that if they’re really going to fight off the inflation we’re experiencing right now, that may come at the cost of a recession,” Sinclair said.
Sinclair believes if Americans are worried, they can focus now on building up their savings.
“But I think what actually makes sense is for individuals to take care of their own household financial situation,” Sinclair said.