US unemployment rate under 4% for longest stretch since 1970s
Unemployment rate has been below 4% for over fifteen months, according to Charles Schwab
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Quick Take
- Liz Ann Sonders, the chief investment strategist at Charles Schwab, pointed out that the unemployment rate in the U.S. is below 4%, the longest period under that level since the 1970s.
- The unemployment rate is currently 3.7%, up from 3.4% in May.
- The unemployment rate is continuing to increase due to rising interest rates as it puts further pressure on jobs.
- The Federal Reserve, without saying it out loud, wants to break the strong labor market as this will be one way of reducing inflation.
- The expectation is labor market stays strong but will continue to rise slowly as the year progresses.
