A recent report released on June 7, 2024, brought mixed news to Americans and the Federal Reserve regarding the state of the economy. While economists like Dean Baker acknowledged the positives in job gains, other aspects of the report revealed concerning trends such as slower GDP growth, reduced spending, and an increase in credit card delinquencies.
In May, economists such as Diane Swonk from KPMG highlighted some of the concerning points in the jobs report. Despite a surge in payrolls, there was also an uptick in the unemployment rate from 3.9% to 4%, marking the first time in over two years that it exceeded 4%. Additionally, wage gains hit 4.1% over the past year, a reversal of the previous trend of cooling down.
The rise in wages was particularly notable in the service sector, encompassing industries like personal care services, dry cleaning, and home maintenance. Swonk pointed out that while
