Question

give your thoughts and impression on this topic ( no less than 300 words)

“Friday's jobs report could eliminate market's recession fears

Friday's jobs report literally is one of the most important in a very long time, since economists believe it will not only send an important signal about whether a recession is coming but also what the Fed should do about it.

Economists expect 175,000 nonfarm payrolls were added in March, after a shockingly low 20,000 in February.

March's report is expected to show that February's data was an anomaly and that job growth remains strong, there is no recession coming and the Fed may not need to cut interest rates.”

Answer 1

Ans) It was believed by President Donald Trump that the Fed should cut down in the interest rates. He personally believed that they should cut down on it since it had slowed down the economy.

But as per the figures released by the Labour department in regards to hiring and unemployment for March, it is pretty evident that the economy has bounced back big time clearing out the doubts related to the recession fear.

As per the various surveys carried out by several analysts and studies, a clear expectation was set for jobs of upto 1,50000 to 1,70000 jobs but as per the report this expectation has surpassed and has seen a considerable positive outcome.

Also the unemployment rate for March was 3.8% similar to what it was in February. In terms of earnings, March saw an average hourly earnings of 3.2% higher in terms of Year on Year wage growth. As per the reports and the studies the economy is expected to slow down as compared to 2018, the considerable gain in hiring, will help in clearing out the current economic situation.

Also an important aspect that can be taken into consideration is the steady wage growth that in a way may prove out to be the catalyst for economic explosion. Higher wages increase the purchasing power and companies concentrating on producing more and meeting the demands shall wish to hire more people.