U.S. Job Market at Full Employment as Biden Era Closes

The U.S. job market ends the Biden era near full employment, despite pandemic challenges and Federal Reserve rate hikes. Biden's tenure saw significant job gains and reshuffled dynamics, with record lows in Black unemployment and increased labor force participation. The Trump administration faces the challenge of sustaining this momentum.

The U.S. job market concluded the Biden administration just shy of full employment, defying fears of a pandemic-driven economic depression and the impact of Federal Reserve interest rate hikes. Despite rising inflationary pressures, job gains and wage growth remained steady, leaving the market with momentum that poses overheating risks.

Recent data from the U.S. Bureau of Labor Statistics reported consistent growth in average hourly earnings beyond the Fed's inflation target. With unemployment falling to 4%, experts express concerns about the challenge facing the Trump administration: maintaining employment strength without inflating risks or worsening the situation.

Under Biden, the job market experienced a significant reshuffling due to the COVID-19 pandemic, achieving milestones in workforce participation and diversity. As the new administration takes charge, sustaining manufacturing growth and managing workforce dynamics amid promised immigration reforms are viewed as priorities.

(With inputs from agencies.)