“Uncomfortably hot jobs report,” said JASON FURMAN. “By defying expectations of an economic slowdown, the report will make it harder for the Federal Reserve to dial back the pace of rate increases at its meeting next month,” writes WSJ’s Gabriel Rubin. Notably, wages jumped 0.5% in July - putting more money in workers’ bank accounts, but also helping keep inflation elevated. And with inflation still the principal financial irritant for many Americans, pocketbook relief could be a long way off.

I ran for president to rebuild the middle class – there’s more work to do, but today’s jobs report shows we are making significant progress for working families.”īut, but, but: A red-hot labor market indicates that the Fed could face a more difficult path to bring down prices. President JOE BIDEN took a victory lap in a statement this morning: “t’s the result of my economic plan to build the economy from the bottom up and middle out. The July data caps a remarkable summertime stretch of positive developments (reconciliation, chips, falling gas prices, etc.) for a Biden White House that was mired in malaise for months. Details from the APĪs always with economic data these days, the numbers are cause for both optimism and concern - and perhaps confusion above all.Ī shockingly robust jobs market is good news for American workers - and makes recession risks look much more remote at the moment. Economist JUSTIN WOLFERS found that it’s actually the lowest unemployment in half a century. added a rip-roaring 528,000 jobs last month in the biggest leap since February.Ī couple of notable data points really laid down a marker for how far we’ve come: (1) The country has now made up the entirety of lost employment when the coronavirus pandemic hit in 2020, and (2) the new unemployment rate of 3.5% beats every month since that recession. The numbers blew past all expectations, as the U.S. WOWZA - This morning, we previewed that economists expected the July jobs report to show a slowing pace of job growth in the neighborhood of a quarter-million new hires, which the Biden administration was already pre-spinning as a “transition” to “stable and steady growth.”

A red-hot labor market indicates that Fed Chair Jerome Powell could face a more difficult path to bring down prices.

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