Researchers at the Brookings Institution in Washington estimated that the new CBO projections suggested the labour market in 2023 could accommodate employment growth of 160,000 to 230,000, compared to previous projections of 60,000 to 130,000, without adding pressure to wages and price inflation.
Nonfarm payrolls likely increased by 200,000 jobs last month after rising 275,000 in February, economists said in a Reuters survey. Estimates ranged from 150,000 to 250,000. “The biggest negative effect of the rate hikes on the labour market has already occurred. What's happening now is the easing of financial conditions is leading to better job growth in many sectors.”
They are, however, not concerned as the weakness reflects increased labour supply through immigration. The Congressional Budget Office recently upgraded its immigration estimate for 2023 to 3.3 million from 1.0 million.