Though the Federal Jobs report for the month of August showed that slightly fewer jobs were created than predicted, there is cause for optimism that the economy will remain strong.
Non-farm payrolls grew by 130,000, approximately 15% less than predicted however, the overall unemployment rate remained the same as it was in July at 3.7%. According to several reports labor participation rose to 63.2%, the highest since August 2013 and the total number of Americans considered to be employed swelled to 157.9 million people.
Though fewer jobs were created, the good news is that wages increased by .4% keeping them on track to increase by 3.2% in 2019. Black unemployment rates in August were at their lowest levels ever at 5.5% with black women accounting for much of that reduction. Unemployment for workers identifying as Hispanic or Latino matched their record low unemployment numbers coming in at 4.2%.
The Labor Department said that with the white unemployment rate at 3.7%, the unemployment gap between whites and minorities is the lowest it has been they began keeping records.
Gloom and doom economists who are have been predicting a recession due to the trade war with China hesitate to admit that is having less of an impact than they expected. Scott Clemons, Chief Investment Strategist for Brown Brothers Harriman though said, “If we weren’t already talking about recession risk, and looking for signs of a slowdown, we wouldn’t start today because of this jobs report.”
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