US Economy Adds 157K Jobs In July, Unemployment Rate Drops To 3.9%

US Economy Adds 157K Jobs In July, Unemployment Rate Drops To 3.9%

Ahead of this morning's new jobs report, most projections said the USA economy added roughly 190,000 jobs in July. "For the second consecutive month, the unemployment rate for Hispanics reached a record low", the statement added. Economists forecast that employers added 191,000 jobs in July, down from 213,000 in June but easily enough to lower the unemployment rate over time.

Trump supporters were ebullient over the latest data - and quick to credit the administration's pro-growth policies for the uptick.

Among the unemployed, the number of people looking for work after losing or quitting their jobs fell by almost 290,000 to 1.8 million. "What makes this low number of unemployed particularly impressive is that the total population in the workplace has increased by nearly 19 million since May 2011". Within social assistance, individual and family services added 16,000 jobs in July and 77,000 jobs over the year.

On the bright side, the hiring spree has continued as the economy marches along. Employment rose in transportation equipment (+13,000), machinery (+6,000), and electronic instruments (+2,000). Last week, the Commerce Department reported that gross domestic product expanded at an annual rate of 4.1 percent in the second quarter, the fastest pace in almost four years.

The question remains though ...

Peter Cramer of Prime Advisors says one reason wages are not growing faster is the large but shrinking pool of part-time workers who are getting longer hours or full-time work.

Last month, Trump also saw a 4.1 percent GDP rate, the highest since 2014. That was an improvement over a 4-cent gain in June. But in June, Minnesota's unemployment rate was below the national average at 3.1 percent. The White House has slapped tariffs on steel and aluminum and on $34 billion of imports from China, and several companies have hit US imports with retaliatory duties. Economists' maintain that wages will rise as economy drains remaining slack from the labor market and businesses' pay more to retain workers.

"If this was a prez [presidential election] year, these strong jobs reports would matter so much more for the elections", CNN election analyst Harry Enten said Friday on Twitter. However, the number was down by 669,000 from July 2017.

It's clear things are getting better ...

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That's what grows the economy, people.

The additional signs of strength in the job market could add to concerns the Federal Reserve would move to raise the key lending rate more aggressively. Prices of U.S. Treasuries were slightly higher.

Although the labor force participation rate was unchanged at 62.9%, it increased for the prime working-age cohort (25-54 years). And it exceeded four percent in seventeen out of those thirty years.

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