The Us Labor Market Is Healthy Treasury Secretary Janet Yellen Says Even As Data Shows Conditions Softening

US Labor Market 'Healthy' Despite Softening Conditions, Says Treasury Secretary Janet Yellen

Slowing Job Growth, Rising Layoffs Seen as Signs of Market Correction Rather Than Recession

The US labor market remains "healthy" despite recent data showing a slowdown in job growth and an increase in layoffs, according to Treasury Secretary Janet Yellen.

In an interview with Bloomberg Television, Yellen said that the labor market is "still very strong" and that the recent softening is likely a sign of a correction rather than a recession.

The US economy added 223,000 jobs in December, below the 250,000 jobs that economists had expected. The unemployment rate remained unchanged at 3.5%, near a 50-year low.

However, there have been some signs of weakness in the labor market in recent months. Job growth has slowed, and there have been an increase in layoffs in some sectors, such as tech and finance.

Yellen said that she is "not worried" about the recent softening in the labor market. She said that the job market is still "very strong" and that the recent slowdown is likely a sign of a correction rather than a recession.

Yellen's comments come as the Federal Reserve is considering raising interest rates to combat inflation. The Fed has already raised interest rates seven times this year, and it is expected to raise rates again at its next meeting in March.

Some economists have expressed concern that the Fed's interest rate hikes could lead to a recession. However, Yellen said that she believes the Fed can raise rates without causing a recession.

What Does This Mean for You?

• The US labor market is still healthy, but there are some signs of softening.
• The Federal Reserve is considering raising interest rates to combat inflation.
• Some economists have expressed concern that the Fed's interest rate hikes could lead to a recession, but Yellen believes the Fed can raise rates without causing a recession.