Last Friday (August 5, 2022), the US Bureau of Labor Statistics (BLS) released their latest labour market data – Employment Situation Summary – July 2022 – which reported a total payroll employment rise of only 528,000 jobs and an official unemployment rate of 3.5 per cent. Many commentators immediately claimed that the labour market was tightening as a result of the decline in the official unemployment rate, but that was all down to a decline in the participation rate – less people looking for work – which is a sure sign that job opportunities are becoming harder to access. When the hires data comes out soon, we will be able to be more definitive on that. The other interesting aspect of this data is that real wages continued to decline in all industry sectors – they have systematically fallen each month since March 2022. I note some commentators are trying to claim that wage pressures are now pushing inflation. That conclusion is untenable given the data. The US labour market is still producing employment but it is hardly booming.