The July NFP report was not enough strong

According to analysts, despite exceeding expectations, the growth of jobs in the US in July (209 thousand), the revision upwards of the June indicator (to 231 thousand 222 thousand) and the reduction of unemployment to 16-year low of 4.3%, the NFP report as a whole is not strong enough. Employment expansion was mainly due to the recruitment of employees on part-time work: in July the number of such employees increased by 393 thousand, whereas the number of employees in full-time employment increased by only 54 thousand

In addition, the increase in average hourly wages by 0.3% compared to the previous month (26.36 USD) coincided with the forecast, but the annual increase was only 2.5%, as in June. For comparison: in the context of strong economic growth, the average hourly wage in the U.S. increased by 3 to 4% per year. The slow increase in annual wages suggests continuing problems in the US economy associated with a relatively low productivity, increased competition on a global scale, and the reluctance of many Americans to change jobs after the recent recession.

The July NFP report was not enough strong 04.08.2017

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