Over May and June, payroll employment increased by 7.5 million, the unemployment rate fell 3.6 percentage points, and the labor force participation rate rose 1.3 percentage points.4 The large bounceback is a sharp contrast to the Global Financial Crisis, when the initial employment decline was shallower and it took much longer before a similar share of the initial job losses was recouped.
In the Overview, we make the point that a quick return to single-digit inflation is critical for reversing inflation expectations and bringing inflation down to 6-7 per cent in the medium term. One cannot have sustained growth and improve the quality of life of the population until inflation is brought under control.