In the midst of a global economic panic set off by the Brexit vote, the United States is providing a sorely needed silver lining with an incredibly strong jobs report released early Friday morning. While the June jobs report won’t accurately reflect how our economy is reacting to Britain committing economic suicide, it did calm fears that our economy was faltering after six years of strong and sustained growth:
The U.S. created 287,000 jobs in June, massively topping analyst expectations.
The national unemployment rate, meanwhile, rose slightly more than expected in June, to 4.9 percent, according to data released Friday by the Bureau of Labor Statistics.
Jobs watchers had been expecting Friday’s jobs report to show a substantial rebound from May’s unexpectedly weak growth, but the June number easily topped expectations.
The increase in unemployment is partly from May’s dismal performance and from more people looking for work in a recovering economy, one of those counter-intuitive aspects of economic growth. More important than both the number of jobs created and the unemployment rate is the increase in average hourly earnings of two cents. One of the largest problems with the recovery has been sluggish wages growth. Two cents is hardly on fire but it’s still moving in the right direction.
These numbers are a problem for Republican candidate Donald Trump and the Republican Party who have been trying to run against Obama’s “failed” economy. Or it would be if they didn’t simply lie about it knowing that their followers will believe them no matter what. On the other hand, it does strengthen Hillary’s bid to continue and strengthen Obama’s legacy. It may not be the explosive recovery people were hoping for but since it hasn’t been built on a bubble like previous recoveries, it’s been extremely stable.
Considering what a mess the rest of the world’s economy is in, we could all use a little stability for a change. But the real test will be July’s job report in the face of the chaos Europe has been thrown into. If we can weather that storm without losing jobs, it will be evidence that we are absolutely on the right economic path.
Featured image via twitter