July jobs growth could embolden Fed
U.S. employment growth was strong in July, as total U.S. nonfarm payroll employment increased by 255,000, keeping the unemployment rate steady at 4.9 percent and increasing the labor force participation rate from 62.7 percent to 62.8 percent, according to the Bureau for Labor Statistics.
Furthermore, the increase in total nonfarm payroll employment during May was revised upward from 11,000 to 24,000, and the increase during June was revised from 287,000 to 292,000.
For institutional investors, an important effect of this growth could be its ability to embolden the Federal Reserve.
“The recent strength in the job market is providing increased assurance to the Federal Reserve Board about the health of the U.S. economy and their choices for monetary policy,” explains Dodge Data and Analytics in its recent report, Job Market Rollercoaster Climbs Higher in July.
The report adds slow economic growth in the first half of 2016, c