While it is welcome news, especially in the aftermath of Brexit, John Ryding of RDQ Economics says, “The economy continues on a solid, but not spectacular path.” The average rise over three months is 147,000 a month.
While wage growth is still below the 3.5 percent rise the Federal Reserve would like to see, it did rise 2.6 percent in June over May, a nice increase from the two percent of earlier this year. However, it is not likely sufficient for the Fed to be raising interest rates.
The overall percentage of Americans working is at its lowest point since the 1970s, partly due to the Baby Boomers retiring, but also many people quit looking for work after the Great Recession. “There’s been a significant loss of momentum from the end of last year,” says Lindsey Piegza, chief economist at Stifel Nicolaus. “The slower pace of the job creation matches the reduced pace of the economy.”
The economy is only expected to reach a growth rate of two percent this year, down from 2.4 percent last year. ##
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