The October jobs report is to be taken seriously but not literally. Once one adds the downward revision of 112,000 jobs for August and September to the 12,000 gain in October, there was a decline in total employment of 100,000 inside the report. We would urge investors, firm managers and ... READ MORE >
U.S. unemployment rate
Why the labor market is stronger than the unemployment rate indicates
At least 19% of the rise in the unemployment rate since last year can be explained by the increase in the labor supply. Since 2021, the return of workers to the labor force, in addition to immigration and population growth, has been a key driver of overall unemployment in the United States. Even though ... READ MORE >
U.S. August jobs report: A soft landing in the economy
The U.S. August report was a solid if unspectacular one that reflected the type of non-inflationary job growth that will give Federal Reserve policymakers confidence as they embark on their long-awaited campaign to reduce rates. Once one adjusts for the benchmark revision, employment has been ... READ MORE >
Expect strong U.S. jobs report for August, but the devil is in the details
We expect a net gain in total employment of 175,000 jobs and an unemployment rate of 4.2% when the U.S. jobs report is released on Sept. 6. In addition, we expect average hourly earnings to increase by 0.3% on the month and for the year-ago figure to cool slightly to a 3.5% gain. The key to any ... READ MORE >
U.S. July employment report to show a gain of 200,000 jobs
Our provisional forecast for the July jobs report when it is released on Friday implies a net increase in total employment of 200,000 jobs with an easing in the unemployment rate from 4.1% to 4%. In addition, we forecast a 0.3% increase in average hourly earnings, which should translate to a 3.7% ... READ MORE >
As economy cools, Fed needs to cut rates
Growth, inflation and hiring in the United States are all cooling toward a more sustainable pace, which will most likely define the second half of the year as the Federal Reserve gets ready to reduce its restrictive policy rate. While the fiscal tailwinds that have bolstered the economy are ... READ MORE >
June jobs report preview: Beveridge curve implies a balanced labor market as hiring cools
The labor market and inflation have finally come into balance. As Mary Daly, president of the Federal Reserve Bank of San Francisco, said recently, the inflection point where unemployment risks could trump inflation risks “is getting nearer.” Now, the risk is that as the economy cools, hiring will slow ... READ MORE >
U.S. jobs report: Strong demand for labor continues its remarkable run in May
This economic commentary is dedicated to the memory of my friend the economics reporter Ben White. I shall miss talking economics, policy and baseball with him. Labor demand continues to increase at a remarkably strong pace, which removes the prospect of a July rate reduction and creates the sense that ... READ MORE >
U.S. jobs report: American exceptionalism amid dynamic growth
While it’s always good to identify risks to the economic outlook, too often market players mistake the condition of a few trees—there are always isolated problems—with the health of the forest. The March jobs report shows just how healthy the American labor market is, despite isolated criticisms. ... READ MORE >
Full employment, low inflation and a virtuous cycle in the American economy
Until recently, the idea that economy could simultaneously have low levels of unemployment and low inflation seemed to be a fantasy. Conventional wisdom, after all, holds that when unemployment is low, businesses need to pay higher wages to attract workers, which pushes up the cost of goods and services, ... READ MORE >