'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)

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
— Jason Furman (@jasonfurman) August 3, 2018

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.

Note tho this month lower than expected, prior two months had +59K revision. pic.twitter.com/LMNTprn6iB
— Aaron Sojourner (@aaronsojourner) August 3, 2018

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:
3 months: 2.9%
6 months: 2.6%
12 months: 2.7%

Is wage growth accelerating or flatlining?
¯\_(ツ)_/¯
— Justin Wolfers (@JustinWolfers) August 3, 2018

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
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
— Michael Madowitz (@mikemadowitz) August 3, 2018