'Merry Employment Situation': Economists React To July Jobs Report On Twitter
Nonfarm payroll employment increased by 157,000 in July, the U.S. Bureau of Labor Statistics reported Friday, marking the country's 94th straight month of employment gains. The unemployment rate fell by 0.1 percentage point to 3.9%.
Food services and drinking places employment continued its upward trend, adding 26,000 jobs in July. Construction employment also continued to trend up, adding 19,000 jobs for the month. Construction employment has increased by 308,000 over the year.
Job gains in general merchandise stores, clothing and accessories stores and food and beverage stores were offset equally by a decline of 32,000 jobs in sporting goods, hobby, book and music stores.
Here is how some economists and others reacted to the jobs report on Twitter.
Jobs up 157,000 (a slowdown from recent months but is volatile and the pace is still fine)— Jason Furman (@jasonfurman) August 3, 2018
Unemployment fell to 3.9% w/ stable LFPR
Biggest news: U6, the broadest measure of labor underutilization, falls to 7.5%, a low for this cycle and the lowest since the late 1990s
Too early to tell if the 157k payroll jobs added in July, fewer than in recent months, is mean reversion, random statistical error, or the beginning of the inevitable deceleration of job creation as we get closer to full employment.— Neil Irwin (@Neil_Irwin) August 3, 2018
Economy added 2.4 million jobs over last 12 months, a bit up from prior year. Likely due bump from the Dec 2017 tax law's fiscal stimulus, which 8.5 years into an expansion, added more public borrowing.— Aaron Sojourner (@aaronsojourner) August 3, 2018
Note tho this month lower than expected, prior two months had +59K revision. pic.twitter.com/LMNTprn6iB
The July employment report is sneaky strong. Yes, headline of 157,000 is a little light, but revisions added 59,000, so US has 216,000 more jobs now than were counted in June! Economy still on track for second consecutive 4% quarter and two more Fed moves this year.— Brian Wesbury (@wesbury) August 3, 2018
If you're looking at where the slowdown this month came from, education & health services had a big slowdown, but also transportation, government, financial activities, other services, and mining and logging. pic.twitter.com/ZLlTkc5QM5— Martha Gimbel (@marthagimbel) August 3, 2018
Annualized growth rate of hourly earnings over the past:— Justin Wolfers (@JustinWolfers) August 3, 2018
3 months: 2.9%
6 months: 2.6%
12 months: 2.7%
Is wage growth accelerating or flatlining?
This is compelling. Salaries are rising, but consumer prices are rising more... https://t.co/QfWZrSFCcn— Lisa Abramowicz (@lisaabramowicz1) August 3, 2018
Average hourly wages would be $3.43 higher if they had grown at the target rate of 3.5%. Read more about nominal wages: https://t.co/rmkqxzB3VX #JobsReport pic.twitter.com/AxKq9v2K6j— Economic Policy Institute (@EconomicPolicy) August 3, 2018
If you're not a jobs nerd this seems really bad— Michael Madowitz (@mikemadowitz) August 3, 2018
If you're a jobs nerd this seems even worse
If we can't get real wage growth in a labor market like this, when is it going to happen? https://t.co/LpUvbCQwTg
We're allowed to say Merry Employment Situation now, Adam— Ryan Decker (@UpdatedPriors) August 3, 2018