The Economy Just Added 222K New Jobs

Screen Shot 2017 07 05

Pantheon Macroeconomics

BLS noted that with these revisions, employment gains in April and May combined were 47,000 more than previously reported. The overall labor force participation rate was mostly unchanged month-to-month in June, at 62.8 percent.

Though the workweek's average length increased by almost one hour during May, wage growth remained tepid, which put a wrinkle into the upbeat report on employment for the USA on Friday. In effect, these officials expressed support for the notion that interest-rate hikes should wait for inflation to hit the 2 percent target before any further increases.

The US economy is estimated to need to produce between 75,000 and 100,000 new jobs a month to keep up with working-age population growth.

"Today's jobs report shows the significant pressure that companies are under to attract, acquire and retain skilled employees", Randstad Sourceright CEO Rebecca Henderson said in a statement.

The current labour force participation rate in the United States is 62.8 per cent, well down on its pre-2008 level, when it was as high as 66 per cent.

Wage growth also could strengthen the Federal Reserve's position that recent below-average inflation levels will not remain that way for the long term. The unemployment rate picked up for the right reasons. As more people look for jobs, the unemployment rate may rise. Health care posted the biggest job gain - 59,100 - despite uncertainty around health care legislation in Congress. Governments added an unusually high 35,000 positions, almost all of them at the local level.

For the third straight month, the number of legal jobs has increased. Average hourly earnings were up 2.5 per cent, little changed from previous months.

With the new gains, an average of 194,000 jobs have been gained in each of the past three months.

Now, the Federal Reserve expects that the labor market will continue to strengthen over the coming months.

The year started off rough for the legal industry.

And auto sales are slowing from last year's record pace, causing some automakers to cut jobs. When those workers are taken into account, the jobless rate rose to 8.6 percent last month from 8.4 percent in May.

Drug use is a problem among many people he considers for jobs, Dix said. The latter might indicate good news about future growth, although it's not far off from May's 35K and identical to April's 45K.

June's jobs report reflects this, according to senior economic analyst Mark Hamrick.

Hot Air's Ed Morrissey, however, explains why we shouldn't pop the champagne quite yet, noting that Republicans have yet to put much of their economic agenda into place.

Nariman Behravesh of IHS Markit said the report overstated some of the vigor in the jobs market, since an important part of June's jump was due to a seasonal upswing in hiring by state and local governments - something that can also be tied to the end of the school year. That amounts to at least 50,000 fewer jobs than the industry's pre-recession high of 1.18 million jobs in May 2007, according to historical Labor Department data.

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