Photo: Flickr USACEpublicaffairs
The July jobs report was “strong” relative to expectations. And in light of the dismal market behaviour, the upside surprise was even more welcome.Here are a few key takeaways:
- Past revisions were very good. Both May and June were revised higher, and it’s not implausible to think that this months’ number will be revised higher as well. That usually happens when the measurement agency is behind the curve, a possible indication of more growth ahead.
- The private economy is far more robust than the government. Contra this idea that government is choking the private sector, it’s government shedding jobs, and the private sector adding them, to the tune of 154K this month!
- The participation rate continues to plunge.
- Everyone was obsessed with this number, as evidenced by the fact that the BLS website has crashed.