Another Good Unemployment Report

It was another decent but not overwhelming jobs report today. The total payroll number increased by 156,000 which includes the loss of 11,000 public sector jobs. The prior two months’ numbers barely moved as the adjustment amounted to a reduction of just 7,000 jobs. The hourly earnings increased again by 6 cents. This is another good report but hardly the stuff that indicates the economy is overheating. It is just more positive jobs news as we plod along in our slow-motion recovery from the financial crisis. There is really nothing here that would indicate the need for an interest rate hike from the Fed. But it is becoming more and more obvious that some of those advocating a rate hike are more worried that they won’t have any room to cut rates when the next slowdown comes as opposed to worrying about the economy overheating.