Hiring in the U.S. rose by 272,000 in May, a stronger than expected figure. Wages rose as well. The second most active sector was government, particularly municipalities. While I have some friends who are on these payrolls, its growth is problematic over the long haul.
Business owners have to compete for labor. When government adds to its rolls, especially locally, it puts pressure on mom & pops. They can’t simply wave a magic wand and decree higher compensation in order to retain employees.
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