Fed Up: Jobs Report Shows Need To Avoid Rate Hike
Campaign points to jump in involuntary part-time work, low employment gains
06.03.2016
NEW YORK – In response to one of the most disappointing jobs reports in years, the Fed Up coalition urged the Federal Reserve to avoid an interest rate increase that would further put the brakes on the economy. The May jobs report showed sluggish employment gains, a declining rate of labor force participation, and a nearly 10 percent increase in involuntary part-time employment – one of the steepest increases since the 2008 recession. The Fed Up coalition is a national effort to bring the voices of low-income workers into debates about the Federal Reserve and national economic policy.
Shawn Sebastian, Field Director for the Fed Up campaign at Center for Popular Democracy, released the following statement:
“The economy is far from full employment, a reality working families and communities of color have already known all too well for far too long – and that was further confirmed in today's jobs report. A Fed rate hike later this month would be a mistake. The Fed has no reason to raise rates and slow down the economy when working families are hardly getting traction as it is. Disappointing job growth, falling participation in the labor force, and a jump in involuntary part-time work all show that interest rates must remain low until we reach real full employment.
Ironically, the unemployment rate has worsened after the best jobs reports this year and improved after the worst, showing that just focusing on the unemployment rate is misleading. To get a true sense of the economy’s health, the Fed must listen to the workers struggling to get the hours they need to survive, those who have stopped looking for work altogether, and all of us who haven't gotten the raises we've needed for years.”
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Fed Up is a coalition of community organizations and labor unions across the country, campaigning to ensure that the public’s voice is a part of debates about Federal Reserve policy. The Fed can keep interest rates low, give the economy a fair chance to recover, and prioritize full employment and rising wages for all communities.
The Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. CPD builds the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda.
Contact:
Asya Pikovsky, apikovsky@populardemocracy.org, 207-522-2442
Anita Jain, ajain@populardemocracy.org, 347-636-9761
