Employment Report Provides Mid-Year Check Up

Employment Report Provides Mid-Year Check Up
Jeffrey Viksjo CFA

Jeffrey Viksjo CFA

The U.S. economy added 224K jobs in June (up from just 75K new jobs in May), alleviating concerns (for now) that a recession is looming. The article found at the link below provides a useful breakdown of the headline number and what it means for the U.S. economy at the midpoint of the year.

The first point is that the impact of the tax cuts does appear to be fleeting. Jobs gains so far this year has averaged 172K per month. This is down from a robust 223K last year, and almost exactly back to where job gains had been in 2016/2017 before the tax cuts were passed. The second key takeaway is that not all job sectors are performing the same. Industries generally insulated from global trade, such as health care and professional services, are performing the best. Manufacturing, on the other hand, which is very sensitive to global growth concerns, is still gaining jobs but at a sharply reduced rate versus last year.

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