The U.S. Labor Department reported that the economy added 187,000 in July and that the unemployment rate came in at 3.5%, down from 3.6% in June. It was the 30th consecutive month of positive job growth and the unemployment rate has stayed in the 3% range now for the past 18 months. Wages in July grew 0.4% over June and 4.4% year over year according to the Department.
The report was greeted by some as a positive sign that the Feds program is working at slowing down the economy, the result of slowing down job creation, but worry wages are not falling far enough to halt inflation. The negative voices are still trying to sell their negative thoughts no matter what is reported. The Feds themselves reported that a recession is not in sight.
This Labor Department report is positive all the way. The jobs market is still robust, claims for unemployment are still at historical lows, job wanted ads are at 9.7 million and wages are still growing. Some business centers are cutting back hours instead of laying off workers because of the tight jobs market. That makes sense. The 187,000 jobs created in July was a good number considering the circumstances. During the first 36 months of the Trump administration (that was 3 months before COVID and the economic recession) job creation averaged 183,000 jobs per month.
Those negative voices who want to see wages fall more and willing to see the continuation of higher interest rates to cool the economy more with weaker job creation still have no economic answers and only painful rhetoric to deal with a good working economy. Those who continue to doubt the 30 months of a growing economy and job creation and why it is taking place are ignorant of the democratic record on the economy for the past 100 years. Keep in mind, the GOP does not govern with economic policy. That is why every GOP administration in the last 100 years has given the country an economic recession. That is not just a coincident. It is the same reason they cannot accept a good economy when they see one.
JP Morgan, one of the largest financial institutions now says there will be no recession. They are the same ones who has been predicting a recession for the past year. Not very smart for a company who should know something about the economy. I wonder how many people's mind was affected by their predictions. Thanks to PolitiDose commentary, the positive news has been delivered and will continue.
This commentary written by Joe Lorio
