Although the latest figures from the Labor Department show an unchanged labor rate for April, analysts believe the pain associated with inflation is starting to hurt the labor market.
According to the Wall Street Journal, the May 6 announcement came with some downfalls. Although employers added workers, total labor participation fell and inflationary pressures are believed to be the culprit.
"Worker paychecks can't buy as much as they did even a few months ago, and those without the luxury to work from home have been slammed by surging gasoline prices," the Wall Street Journal said.
The Wall Street Journal article pointed out the numbers from the household survey are known to fluctuate from month-to-month. However, labor participation and the workforce have been on an upward trend since the start of 2021 as "lockdowns eased and vaccines rolled out." Yet, that upward trend was reversed last month which represented "the biggest labor participation decline since September 2020."
"Expectations for continued economic growth rest with solid consumer spending, but the jobs report raises the question of how long this will continue if real wages keep falling," the Wall Street Journal added.
According the U.S. Bureau of Labor Statistics Employment Situation Summary, the April unemployment rate remained at 3.6%.
The agency's survey of households also showed the labor force participation rate dropped 0.2 percentage points to 62.2% and total employment declined by 353,000 from March to April of this year.
The Wall Street Journal also noted demand for workers isn't falling, as nearly every employer has reported they are desperate to hire. During the month of March, an estimated 11.5 million job openings were reported, according to JOLTS.
Even though wages are up 5.5% from last year, the Wall Street Journal pointed out increases have slowed over the past few months. The cause is believed to be linked to employers hiring more lower-wage workers, which would reduce average earnings, as well as employers "struggling to increase pay amid other inflationary pressures."
Arizona's current unemployment rate is 3.3% which is below the national average, according to the Bureau of Labor and Statistics.