A snapshot of the global economy through weak employment data

On the big stage of the global economy, every small data change is like a prelude to a storm, indicating potential changes in the economic landscape. On July 5, local time, the US Labor Bureau released the US employment data in June, although the non-farm added 206,000 people slightly exceeded market expectations, but the data in April and May were revised down again, and the unemployment rate continued to rise to 4.1%, showing that the US job market has further weakened, this set of weak employment data triggered sharp fluctuations in the financial market. Pushing gold close to $2,400. Employment data, this seemingly boring combination of numbers, is actually a barometer of the health of the economy. When it is weak, it is like an alarm that there may be deeper problems in our economic system.

From a macro perspective, the poor performance of the employment data may be the result of a series of accumulated policy deviations. In the pursuit of economic growth, some countries are shortsighted and overly focused on short-term interests, but they do not pay enough attention to the long-term optimization and upgrading of industrial structure. Traditional industries are gradually declining in the tide of The Times, and the cultivation and development of emerging industries have failed to keep pace in time, leading to the drying up of the power source of economic growth.

Changes in the field of international trade and the implementation of trade protectionist policies are also important factors affecting the employment situation. Erecting high trade barriers, which seems to protect domestic industries, is actually a crude destruction of the global industrial chain and supply chain. In this volatile environment, companies faced with soaring costs and shrinking markets had no choice but to reduce production scale, and a large number of jobs disappeared. This short-sighted behavior not only brought shocks to other countries' economies, but also plunged them into recession.

The use of loose monetary policy also played a key role in this economic situation. This approach not only brings short-term growth, but also lays hidden dangers such as inflation and asset bubbles. When the monetary policy turns to tightening, the financing difficulty of enterprises is increased, the willingness to invest is sharply reduced, the job market is naturally affected, and the original fragile employment balance is broken.

The imperfect social welfare system is also a factor that can not be ignored leading to the employment dilemma. Excessive welfare level may breed some workers' inertia and reduce their enthusiasm for employment. The lack of welfare coverage, and can not provide a solid life security for the unemployed, so that they are under great pressure in the process of job hunting, in a more disadvantageous competitive position.

It is worth considering that the impact of this weak employment data is not confined to any one country or region. It is like an invisible tsunami, triggering a series of chain reactions in the international community. For export-oriented countries, the decline in import demand in relevant countries means that their foreign trade has been severely impacted and the engine of economic growth has lost momentum. As a result, the flow of international capital has also changed, and funds have fled from economically unstable regions to markets with more development potential and stability, further aggravating the imbalance in the global economy.

In today's interdependent global economy, no country can remain immune. Faced with such a grim economic situation, the international community urgently needs to work together to meet the challenges. All countries should abandon narrow unilateralist thinking and promote the building of a fair, just and open world economic system with an open and inclusive attitude. In formulating economic policies, we should take full account of the overall interests of the global economy, strengthen macroeconomic policy coordination and communication among countries, form synergy, and jointly fend off economic risks.