Job Growth Still Steady

Comment on U.S. Bureau of Labor Statistics Employment Situation Report By Gad Levanon, Managing Director, Economic Outlook & Labor Markets, The Conference Board

Aug 07, 2015, 09:35 ET from The Conference Board

NEW YORK, Aug. 7, 2015 /PRNewswire/ -- The US economy added 215,000 new jobs in July. That is a little lower than the average of the past year, but overall employment growth is holding up well. As we expect GDP growth to slightly pick up in the second half of 2015, 200,000+ monthly job gains are possible for the coming months, unless we see a big pickup in productivity.

One of the stronger numbers released today was the uptick in average weekly hours, which contributed to a 0.5 percent growth in aggregate weekly hours, a nice boost to the purchasing power of consumers.

The unemployment rate stayed at 5.3 percent in July. Given that the labor force is barely growing at all, current job growth rates will continue to rapidly lower the unemployment rate, perhaps reaching 5 percent by year's end. As the labor market continues to tighten, we expect to see faster wage growth in late 2015.

About The Conference Board

The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: To provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org

 

SOURCE The Conference Board



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