NCSU professor predicts weaker job growth for June report

NC State economics professor Mike Walden gives his thoughts on what the June jobs report will reveal when it comes out on Friday morning.
Posted 7/8/2022, 10:33:00 AM Updated 7/8/2022, 11:56:32 AM

SENSORS AND LET YOU KNOW HOW

THAT'S DEVELOPING ANOTHER

UPDATE ABOUT 10 MINUTES FOR

THAT. THANKS, RYAN.

>> WE'VE BEEN TALKING ABOUT

THE MONTHLY JOBS NUMBERS THAT

ARE DUE OUT AT 8.30, THIS

MORNING. JOINING US LIVE NOW

TO TALK MORE ABOUT WHAT THAT

NEW REPORT COULD SHOW US ABOUT

THE U.S. ECONOMY IS NC. STATE

ECONOMIST MIKE WALDEN. MIKE,

GOOD MORNING. THANKS FOR

JOINING US. SO THIS JOBS REPORT

WILL LOOK BACK AT THE MONTH

OF JUNE. WHAT CHANGES DO YOU

THINK WE'LL SEE COMPARED TO

MAY.

>> I EXPECT THAT WE'RE GOING

TO SEE I'M LOOKING FOR MAYBE

250,300 1000 NEW JOBS CREATED

IN THE NATION. BUT THAT WILL

BE LOWER. AND I THINK ANALYSTS

THINK THAT THEY WILL BE LOWER

THAN THE THAT WE HAD IN IN MAY.

AND THAT WOULD BE A SIGN OF

SLOWING IN THE WILL ALSO LOOK

AT WAGE GROWS. WE'LL LOOK AT

WHERE THE JOBS AND THE

UNEMPLOYMENT RATE. I THINK THE

UNEMPLOYMENT RATE WILL EITHER

HOLD STEADY AT MAY INCH UPWARD.

JUST A SMIDGE. BUT I THINK WE

ARE LOOKING FOR WEAKER JOB

GROWTH IN JUNE.

>> AND YOU MENTIONED THAT JOB

MARKET SLOWDOWN. WHY WITH THE

JOB MARKET BE SLOWING AND COULD

SLOWER JOB GROWTH? ACTUALLY

BE A GOOD THING?

>> WELL, THE FEDERAL RESERVE

ONCE THE ECONOMY TO SLOW.

THAT'S THE WAY THEY ENGINEER

LOWER INFLATION RATE.

UNFORTUNATELY.

AND THEY HAVE BEEN RAISING

INTEREST WE'VE SEEN OTHER

INDICATORS THAT THE ECONOMY

IS IS SLOWING AND THE TRADEOFF

HERE IS IF WE GET FEWER JOBS

CREATED AND WE GET LOWER

INCREASES IN WAGES, WHICH IS

ANOTHER THING WE NEED TO BE

WATCHING THAT SHOULD PUT

DOWNWARD PRESSURE ON THE

INFLATION RATE THE FEDERAL

RESERVE DOESN'T WANT TO SEND

THE ECONOMY INTO RECESSION.

THERE'S A LOT OF TALK OF THAT.

WE DON'T KNOW IF WE'RE IN A

RECESSION YET. WE'RE NOT

SOMETHING WE ARE. OTHERS THINK

WE'RE NOT. BUT THIS IS ALL A

PLAN IN ORDER TO COOL OFF THE

ECONOMY. SO THEY THEY'RE

WILLING TO SACRIFICE A LITTLE

BIT OF JOB GROWTH FOR A LOWER

INFLATION RATE.

>> AND CC 8 ECONOMISTS, MIKE

WALDEN, THANK SO MUCH AS