Labor Market Kept It Tight in 2022

Workers have had a banner year in 2022 — wages are high, employment is strong and job-hopping opportunities are plentiful, a streak that continued through the latest numbers released by the Bureau of Labor Statistics Dec. 2.

There’s still one more jobs report coming in January to cap off the year, but experts say it’s doubtful anything radical will happen to void this assessment: The labor market is still running hot.

“The key takeaway for 2022 is the labor market has lived to fight another month in terms of its tightness and strength,” says Nela Richardson, chief economist at ADP Research Institute. 

When you combine a tight labor market with persistently high inflation and six rate hikes by the Federal Reserve this year, it also makes for truly bizarre economic conditions. And another rate hike is expected in December. 

“The question before us all is whether or not the Fed can bring down inflation without terminating job gains and crushing wage gains,” Richardson…

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This article was written by Anna Helhoski and originally published on www.nerdwallet.com