Last week, I appeared on Yahoo Finance “Midday Movers” to discuss the July jobs report. In July, the U.S. economy added 157,000 jobs, missing expectations. Despite this, unemployment hit 3.9 percent — reaching close to the lowest unemployment rate we’ve seen in almost half a century. In our opinion, this isn’t the beginning of the end of jobs growth. When looking at average work week data, the average is still at 34.5. This means that the average work week is still long enough that employers are adding jobs.
Despite the “miss,” the economy is still doing well, and after you factor in the large bankruptcy from Toys “R” Us and Babies “R” Us stores, those losses balance out what was expected in July.
Another positive sign is that Help Wanted signs are everywhere. Here in Pittsburgh, we tend to see a spike in job openings toward the end of the summer when students go back to school and leave their summer jobs. But job openings have been present all summer long. We’re really looking for employees here in the heartland, which is a sign that the labor market is in fact, tight.
Check out the full segment by clicking the picture below: