Job openings surged and the labor market rebounded from pandemic shocks in 2022. New government data shows a strong job market. The annual jobless rate for 2022 fell to its lowest recorded rate of 7.6%. The “Work Experience of the Population” report released by the Bureau of Labor Statistics provides a snapshot of the labor market for the entire year. In 2022, fewer people experienced unemployment compared to the previous year. A significant worker shortage led to more available jobs than job-seeking Americans. The labor market strength contributed to The Great Resignation phenomenon. The job market was strong across demographics, and the annual unemployment rate declined for women, men, and all major race and ethnic groups. The tight labor market helped the economy recover from a pandemic-induced recession but may have also contributed to surging inflation. Inflation peaked in June 2022 at its highest level in 40 years. The labor market remained resilient in 2023, despite interest rate hikes by the Federal Reserve to combat inflation. The unemployment rate dipped to 3.7% in November, and the US economy added 199,000 jobs.
