In the six months since President Trump took office, the U.S. has gained 1.1 million jobs after employers added another 209,000 in July and 231,000 for June, according to the U.S. Labor Department.
The July 2017 numbers were quite a bit better than estimates, which had called for 183,000 jobs.
Employment in food service establishments was up by 53,000 in July. Professional and business services added 49,000 jobs. Health care companies tacked on 39,000 jobs. Manufacturing added 16,000 workers, too.
Renewed employer optimism bumped the participation rate from 62.8% to 62.9%, as the number of adult workers out of the labor force fell by 156,000 to 94.65 million. Better still, the number of employed Americans also hit a new high of 153.5 million, pushing the employment to population ratio to an eight year high of 60.2%.
No wonder the eight-year bull market is still alive and well.
We’re seeing other signs of improvement. Wages were up 0.3% month over month. Year over year, wages are up 2.5%, which is above projections for just 2.4%.
Even the Federal Reserve has been impressed with jobs growth, and it may press ahead with rate hikes and balance sheet normalization, according to CNBC.
Continued strength in the jobs market could keep household spending numbers humming along in the third quarter.
In short, healthy hiring data tells us employers are optimistic about their businesses and future consumer demand. As long as that remains in place, it’ll fuel greater consumer spending, which should lead to faster economic growth.
It’ll also keep investors happy, which could propel markets to even higher levels.
Stay tuned to The Cheap Investor for more.