Five Takeaways From Jobs Report

The Wall Street Journal Real Time Economics blog is downbeat on the NFP:

  1. Don’t get too concerned about the headline number being weaker than expectations — it’s well within the margin of error.
  2. Hourly wages fell by 2 cents on average — not a huge drop, but nonetheless a move in the wrong direction
  3. This month’s reports suggests a weakening outlook: companies trimmed employees’ hours, temporary jobs — which can be an indicator of permanent hiring in the future — grew at their slowest pace since last fall, the revisions were a bad sign — the government tends to underestimate growth during good times and overstate it during bad times, so downward revisions can suggest the labor market is weakening.
  4. Little confidence from workers
  5. The health sector added a mere 2,500 jobs in July, the fewest in a decade. Meanwhile, one of the most persistent drags on growth, the public sector, showed signs of stabilizing.

More details at the Wall Street Journal (ungated): Five Takeaways From Jobs Report

There’s also more here – various economists’ reactions to the jobs report: Economists React: Jobs Data Disappoint on Multiple Fronts (again, non-gated)

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