Job Creators Network Reacts to May Jobs Report
Alfredo Ortiz, president and CEO of Job Creators Network, released the following statement on today’s jobs report, which showed 339,000 jobs were created last month, while the unemployment rate rose to 3.7% and the labor force participation rate remained at 62.6%:
“While Democrats and the media cheer today’s jobs report, the condition of the labor market is not as strong as the topline jobs number suggests. The report shows that real wages continue to decline. For the 26th consecutive month, average wages grew slower than inflation. The Biden presidency will be forever marked as one where Americans got poorer and saw their living standards decline. Unemployment also increased significantly, reflecting the difficulties many businesses are having in today’s stagflationary economy. Since the labor market is a lagging indicator, expect unemployment to increase and topline job growth to decline in the months ahead.
“A big concern for small businesses right now is that the Federal Reserve will use this jobs report to increase interest rates again at its next meeting this month. This move would further reduce access to credit for small businesses and hurt community banks that make 60% of small business loans. According to JCN’s new SBIQ poll, two-thirds of small businesses say rising interest rates will reduce their access to credit. Credit is the lifeblood of the economy, and without it, the nation will fall back into a recession.”