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US created 209,000 jobs in July, vs 183,000 jobs expected

Posted by on Aug. 4, 2017 at 9:25 AM
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1 mom liked this

US created 209,000 jobs in July, vs 183,000 jobs expected

  • The U.S. economy added 209,000 jobs in July and the unemployment rate dipped to 4.3 percent, according to a government report Friday.
  • The report comes with the economy at a crossroads as President Trump has promised 3 percent economic growth.

Workers assemble cars on the line at the Tesla's factory in Fremont, California.

The U.S. economy added 209,000 jobs in July and the unemployment rate was 4.3 percent, according to a government report Friday.

Economists surveyed by Reuters had expected the report to show growth of 183,000 with the jobless rate ticking down to 4.3 percent, the lowest since March 2001. A more encompassing rate that includes discouraged workers and the underemployed was unchanged at 8.6 percent.

The number of employed Americans also hit a fresh new high at 153.5 million. The employment-to-population ratio also moved up to 60.2 percent, its highest level since February 2009.

Stock market futures liked the news, rising to indicate a positive open, while government bond yields also moved considerably higher.

"Kind of all-around strong headline number," said Tony Bedikian, head of global markets for Citizens Bank. "More people are coming into the labor force and finding jobs. It's difficult to find anything really negative in the report."

The closely watched wage number was unchanged from previous months, with average hourly earnings up 2.5 percent. The average work week also was unchanged at 34.5 hours.

Bars and restaurants provided the biggest boost for the month with 53,000 more positives, while professional and business services contributed 49,000, the Bureau of Labor Statistics said.

In addition to the strong July report, June's 222,000 gain was revised up to 231,000 though May was cut from 152,000 to 145,000.

Significant job gains also came from health care, with 39,000.

"This is an unambiguously positive jobs report, as it suggests that consumers will have the wherewithal to increase spending (with solid job gains and faster wage growth) and that inflation may be slowly pushed higher by tighter labor and product markets," said David Berson, chief economist at Nationwide.

The report comes with the economy at a crossroads. While job gains have continued apace during the Trump administration, wage increases have remained tepid as the president has promised growth closer to 3 percent than the average 1.9 percent so far this year.

President Donald Trump was quick to react, praising the numbers as indicative of stronger growth.

In addition, the Federal Reserve is watching the numbers closely, particularly for wage increases. The central bank has indicated it plans one more interest rate hike this year as well as the beginning of its program to unwind the bond portfolio it accrued while trying to stimulate the economy out of the financial crisis.

Indeed, traders increased the chances that the Fed moves again before the end of 2017. Chances of a move at the December meeting are now just above 50 percent.

"If the labor market continues to tighten over the coming months, as the survey evidence suggests it will, the Fed will press ahead with rate hikes and balance sheet normalization later this year," said Michael Pearce, U.S. economist at Capital Economics.




https://www.cnbc.com/2017/08/04/us-nonfarm-payrolls-july-2017.html

by on Aug. 4, 2017 at 9:25 AM
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-Celestial-
by Pepperlynn on Aug. 4, 2017 at 9:41 AM
Thanks Obama!

His presidency set this in motion after the 100s of thousands of jobs we were losing when he went in to office.

Cheeto cant stand that hes already a lame duck.
meriana
by Platinum Member on Aug. 4, 2017 at 11:32 AM

I always end up wondering about the wages since there's a huge difference between having a job that gives one a paycheck of some kind and one that actually allows one to support him/herself and family without assistance.

Being able to show that XX number of jobs have come into being looks/sounds great but if those jobs are low paying and those employed in them need assistance to get by, it's really not a win.

ILovemyPaulie
by on Aug. 4, 2017 at 11:35 AM
1 mom liked this


Quoting -Celestial-: Thanks Obama! His presidency set this in motion after the 100s of thousands of jobs we were losing when he went in to office. Cheeto cant stand that hes already a lame duck.


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