People Like Having Jobs
(Bloomberg) -- If you follow the discussion on Twitter (or frankly among a lot of people in markets) you’d think that the big economic issue facing people right now is rising inflation. Gas prices. Lumber prices. Grain prices. Home prices. Yes, they’re all up a lot, and obviously this is a reason for concern, particularly if it continues unabated.
But of course, rising costs aren’t the only things happening right now. The job market is also bouncing back at a much more rapid clip than almost anyone expected a year ago, or even a few months ago. And the rapid recovery in the job market makes people happy.
You can see it clearly in the latest Consumer Confidence numbers, which have surged to their highest level since the pandemic began. If you look at the Labor Differential measure — which looks at the gap between consumers who view jobs as plentiful vs. the percentage of survey respondents who view jobs as scarce — it’s soaring alongside the reopening of the U.S. economy.
There’s no question that the rising price of various goods is a source of consternation for people. But when you look at what really matters for how people feel about the economy, the resurgence of the job market is the overwhelming factor.
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