Last week’s jobs report came in better than expected with employers adding 315,000 jobs in August, but surprisingly the unemployment rate moved up slightly to 3.7%. While that may seem contradictory, the reason is that the more people are entering the workforce. This week’s chart shows that the U.S. civilian workforce has now returned to pre-pandemic levels. While the unemployment rate is likely to continue move up in the coming months,┬áthe recent report shows that the labor market continues to be strong despite the Fed rate hikes and high inflation.

Source: Bloomberg

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