The fact that employment is rebounding more strongly for a demographic group that is often at a labor market disadvantage, paired with rising wages, helps support the White House’s view that President Biden’s policies and the healing economy are giving people more power over their economic fates.
“Today’s job news brought us something else to celebrate,” Mr. Biden said during remarks at the White House after the data were released.
“That kind of competition in the market doesn’t just give workers more ability to earn higher wages,” he said. “It gives them the power to demand to be treated with dignity and respect in the workplace. More jobs, better wages. That’s a good combination.”
The jobs numbers were also a welcome reprieve for an administration that has been surprised by, and criticized for, weak job gains in previous months. Job gains fell short of analyst expectations in May and April, prompting criticism from Republicans, who said the $1.9 trillion economic aid bill the president signed in March was holding back the recovery — by extending supplemental benefits for unemployed workers through September, which some businesses blame for difficulties hiring workers — and stoking rapid inflation.
On Thursday, Republicans on the Ways and Means Committee taunted Mr. Biden in advance, in a news release headlined: “After two underwhelming jobs reports, President Biden’s June report is make or break.”
The report’s details supported the idea that workers have more bargaining power. Average hourly earnings climbed by 0.3 percent between May and June, matching what economists in a Bloomberg survey had expected. Coming on the heels of two even stronger months, the gain signaled that companies are paying up to hire.
Some reopening-affected sectors showed an especially strong performance: Workers in leisure and hospitality jobs who are not supervisors saw pay pop by a striking 2.3 percent between May and June. Those data confirm other evidence that workers have the upper hand in the reopening economy. The Conference Board’s index showing that jobs are “plentiful” has soared higher in recent months, people are quitting at higher rates, and people report looking for higher wages before accepting a position.
Article source: https://www.nytimes.com/2021/07/02/business/economy/jobs-economy-covid.html
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