Milestone For Trump: 1 Million New Jobs In Six Months


As Michael Feroli, chief economist at JPMorgan, put it, the July report was another example of "boring stability" not dynamic growth.

The number of Americans not participating in the labor force declined from 94,813,000 in June to 94,657,000 in July.

These numbers signal that Americans are seeing reasons and motivation to jump back into the labor force to seek employment, and are actually finding jobs.

Their view is that the labor market is approaching full employment for both skilled and unskilled labor, noting "the increased inclination of workers to change jobs for higher wages".

The largest number of jobs gains were in the category of "food services and drinking places", which added 53,000 jobs in July. Employment growth has averaged 184,000 per month thus far this year, in line with the average monthly gain in 2016 (+187,000). According to The PayScale Index, which tracks the change in wages for employed US workers, wages increased 2.4 percent from Q2 2016 to Q2 2017.

In July, wages posted a strong 0.3% increase, as average hourly earnings for all employees on private nonfarm payrolls rose by 9 cents to $26.36. Over the past year, average hourly earnings have risen by 65 cents, or 2.5%. Or are they largely people entering the labor force or looking for a second part-time job?

The Bureau of Labour Statistics reported that the USA economy added 209,000 jobs last month, higher than the 180,000 expected by economists.

The number of long-term unemployed-jobless for 27 weeks or more-rose slightly to 1.8 million and accounts for 25.9 percent of the unemployed. "It's worth paying those higher wages", Eric Rosengren, president of the Federal Reserve Bank of Boston, said in a interview this week. While economic growth has been stuck near a 2% annual rate-the weakest expansion since World War II-hiring has been consistent, with payrolls expanding for 82 straight months.

Another continual worry spot is wage growth, which remains sluggish.

Statistics Canada says the province's unemployment rate last month was 6.6 per cent, up from 6.5 per cent in June. Over the past three months, job gains have averaged 195,000 per month.

If you're keeping track, one million new jobs have been created since January.