3 Takeaways From the June Jobs Report
The U.S. will continue to outperform as long as there's no trade war.
More demand than supply.
Photographer: Joe Raedle/Getty Images
The monthly jobs report for June, released Friday, is further evidence that this indicator has become more than just a snapshot of the health of a key part of the U.S. economy and the outlook for monetary policy.
A long run of impressive monthly job creation is among the main reasons why the projections of economists, in both the private and public sectors, have continued to be bullish for U.S. growth, despite growing uncertainty about the rest of the global economy and the threat of a trade war. This also explains in part why the Federal Reserve is now signaling two rate hikes during the second half of the year. In addition, this report’s less-favorable indicators — relatively sluggish wage growth and a higher unemployment rate due to increased labor-force participation — keep open the possibility of further enhancements to both the demand and supply drivers that support a continued expansion that is stronger and more inclusive.