The Labor Department announced the latest employment numbers. The report showed US employers added a healthy 255,000 jobs in July.
The figure indicates that US employers were not discouraged by Britain’s decision to leave the European Union and should offer some reassurance despite the sluggish 1.2% annual growth rate for Q2.
Strong employment numbers combined with weak economic growth indicate productivity growth continues to lag and this concerns policy makers as they consider their interest-rate policy in the months and years ahead.
Overall, most recent economic numbers have been mixed. Americans are confident enough to step up home purchases, aided by the still near-record-low mortgage rates. Sales of existing homes reached a nine-year high in June and sales of new homes is currently at an eight-year high.
Many analysts expect the economy to rebound in the second half of the year. Strong hiring should in theory mean more paychecks into more pockets and supports greater spending.
Policymakers have one more set of jobs figures before their September meeting. That meeting has been earmarked by many economic experts as a potential moment for a second increase in interest rates.
To see the actual report released on Friday August 5, 2016, visit here.