Following months of weak numbers — which prompted fears of an economic slowdown — the new June BLS jobs report, released this morning, exceeded everyone’s expectations.
— CareerBuilder (@CBforEmployers) July 8, 2016
CareerBuilder CEO Matt Ferguson discussed today’s jobs report with The New York Times this morning.
Matthew Ferguson, chief executive of the online job site CareerBuilder, which recently commissioned a survey of hiring managers and workers, said employers indicated they were being pressured to raise wages for skilled and semiskilled workers. Still, he has not seen any outsize bump or drop in hiring.
“We’ve just had a slow and steady labor market in the last couple years,” he said, “and I’m guessing that will continue for the next six months.”
Here’s what the numbers for 2016 look like when they’re averaged out.
— Nick Timiraos (@NickTimiraos) July 8, 2016
As you may know, following each month’s BLS jobs report, we read dozens of news reports, scour the web, and break what we find down to three key talking points you can use. Whether you’re taking a break at the office water cooler or conversing with peers in the industry, you’ll have three conversation starters in your pocket.
Here’s the News You Can Use From Today’s Release:
1. Reason to celebrate? Here are a sampling of headlines from around the web: “Jobs Roar Back With Gain of 287,000 in June, Easing Worry” (The New York Times); “Jobs report suprises to the upside: U.S. added 287K jobs in June” (CBS); “US created 287K jobs in June vs. 175K expected” (CNBC); “June Jobs Report Blows Past Expectations” (Fortune); “Jobs report crushes expectations” (Business Insider).
According to CNBC:
Jobs watchers had been expecting Friday’s jobs report to show a substantial rebound from May’s unexpectedly weak growth, but the June number easily topped expectations.
According to Business Insider:
It was the biggest gain in eight months and was stronger than even the most optimistic forecasts among economists. Their median estimate was for a nonfarm-payroll gain of 180,000, according to Bloomberg.
2. Where were the biggest gains? Curious how various industries fared in June? According to Business Insider:
Factory jobs increased by 14,000 after a 16,000 drop in May as the manufacturing sector continues to recover from a slowdown triggered by the strong dollar and weak commodity prices. Big job gains were also recorded in leisure and hospitality, healthcare, and social assistance.
3. What about wages and the Fed? Wages haven’t really been the bright spot in previous reports, but there has recently been slight progress on that front.
Wage growth heading in right direction. Up 2.6% over past 12 months. Will nice to have that number start with a 3 though.
— Paul R. La Monica (@LaMonicaBuzz) July 8, 2016
But is it enough to impact interest rates?
— Pedro da Costa (@pdacosta) July 8, 2016
According to CBS News:
Wage growth…rose a tepid 2 cents, or 0.1 percent, for the month, but the longer-term trend was positive, with wages up 2.6 percent from the year earlier. Wage growth during most of the recovery remained stagnant, so the recent uptick in pay suggests slack in the labor market is decreasing.
According to Fortune:
U.S. job growth surged in June as manufacturing employment increased, more evidence the economy has regained speed after a first-quarter lull, but tepid wage growth could see the Federal Reserve remaining cautious about hiking interest rates.