Commentary: 117,000 jobs created, but that’s not nearly enough
WASHINGTON (MarketWatch) — Global markets were relieved by the stronger-than-expected growth in U.S. jobs in July, but the figures are still dismal.
The Labor Department reported Friday that nonfarm payrolls rose by 117,000 in July, ahead of the 75,000 anticipated by the economists polled by MarketWatch. The unemployment rate dipped to 9.1%, rather than remaining at 9.2% as in June.
The internals of the report were also favorable. Job growth was revised higher for previous months. Most industrial sectors were hiring. Average hourly earnings rose smartly.
For markets fearing the worst, the July employment report was a huge relief. For now. But economic unease remains, despite Friday’s report. “It is a sorry state of affairs when 117,000 total jobs created in any given month is cheered enthusiastically by markets,” said Dan Greenhaus, chief global strategist for BTIG.
The unemployment rate is still over 9%, after all. The percentage of American adults in the labor force fell to a 27-year low as thousands dropped out. Europe still has its debt problems, America still has sluggish demand, and China is still trying to slow its economy on purpose. Read commentary: Are we already in a recession?
The jobs report was good enough to knock the wind out of the bears on Wall Street. But bears are not easily discouraged.
