Jobs Report Exceeded Expectations -Hospitality #1!
For the second month in a row, the released a jobs report that exceeded expectations. The new July report, showed a total of 75,000 more jobs than economists were expecting (255,000 vs. 180,000 expected).
It further showed that the Hospitality Industry was the leading industry for hiring.
Here are three things to know from today’s report:
1. What do today’s numbers mean looking at the big economic picture? Here are some reactions from leading news outlets:
According to The Wall Street Journal:
The U.S. labor market in July capped off the best two-month stretch of hiring so far this year, a sign of strength for an economy that has been showing mixed growth signals in recent months.
According to CNBC:
“This was another strong report that checked most, if not all of the significant boxes,” said Curt Long, chief economist at the National Association of Federal Credit Unions. “The labor market should remain strong as long as consumers maintain their robust spending pace.”
2. The labor force participation has increased. But what does that mean?
According to Business Insider:
The labor-force participation rate rose to 62.8%. It was being closely watched again to gauge whether a record number of job openings drew people into the labor force. The rate has steadily declined in recent years, partly because of baby-boomer retirements. But at the same time, there are fewer people outside the labor market finding jobs — suggesting that the economy is near or at full employment.
3. What about wages and the Fed? Wages haven’t really been the bright spot in previous reports, but there has recently been slight progress on that front.
According to Marketwatch:
The much stronger than expected increase in new jobs also raises the odds that the Federal Reserve might raise interest rates as early as September. The central bank held off after job creation appeared to slow in May.
According to The New York Times:
June’s gains were revised upward by 5,000 jobs, and May by 13,000. The combination of better gains in the spring and July’s jump in hiring suggest that the Federal Reserve may take a fresh look at raising interest rates when it meets in September.
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