August 8, 2016
Surprisingly strong job growth in July indicates the labor market may not have gotten derailed after all. Last spring, the worry was that the economy was weakening, though economists say it was just an anomaly.
Now, backed by two straight months of job increases, the economy may have found solid footing. The Labor Dept. says employers added 255,000 net new jobs in July, and wages also showed solid gains.
The unemployment rate held steady at 4.9%, close to an eight-year low, and the labor force expanded by about 407,000. Continued positive news may put a Fed rate hike back on the table for September, though many don’t expect a decision to come until after the election.
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