POWER ECONOMICS
The economy is strong! But Can People Afford
Homes?
CURRENT ECONOMIC STATES AND TRENDS In May 2022, the labour job market ruled out the prediction that the market would continue to face high inflation and interest rates. Last month experienced a lot of changes in the economy amid healthy economic growth. The Federal that month could study the speedy rate hikes and experienced stock market indexes falling after the government released the new jobs. For the last two years, the U.S government have been trying to attain economic recovery that was affected by the covid 19 pandemic, which disrupted almost every business. There was a need to hire more people in May this year because most businesses saw an increase in customers buying despite the high inflation rates. Employment would thus increase the efficiency of most businesses. Among the sectors that announced new job opportunities were construction, with about 36,000 job vacancies. The people who bought new homes and had not built due to labour shortages were at an advantage with an 10 | JULY 2022
increased labour force in the market. Other areas that added opportunities were the shipping companies having around 47,000 new job positions to help deal with the growing number of online commerce users. Entertainment venues and restaurants added about 84,000 new jobs. Over the last two years, the economy has been fighting high inflation, increasing rapidly. It could be why people aged 50 and above are unwilling to retire. To fight inflation, the government increased hourly wages by 10 cents but still, this would not help keep up with inflation rates evident in almost every business. This is because inflation rates increase very fast, and the increase in wages is at a lower rate, thus the big difference. Interest and inflation rates have affected most businesses because there have been incidences whereby people are giving up low-paying jobs for high-salary jobs, and the occurrences are increasing significantly. However, such cases were evident even during the pre-pandemic years. Most employers say that potential employees want to be paid more than their qualifications, putting the business at risk of dwindling if the matter is not dealt with. However, entrepreneurs such as Tom Gimbel, the CEO of LaSalle Network and Jackie Bondanza, head of Hound Town, intend to expand the business by having branches in other parts of the country
PHOTOS FROM 123RF
I
n May this year, employers in the U.S created 390,000 employment opportunities. The act boosted the economy from high inflation and interest rates. Unemployment rates are still at 3.6%, slightly higher than the half-century low.
