A positive but decelerating job creation histogram (JCH) suggests tepid annual job growth within a backdrop of civilian labor force contraction. A zero crossover will signal to the Fed that policy inaction is not longer an option. Until then, a combination of following the path of least resistance (up) and well-timed “whatever it takes” jawboning allows the reallocation trade from bonds to stocks to continue.
Chart: Job Creation Histogram (JCH): Net Nonfarm Payrolls Added/(Lost) less Civilian Labor Force Added/(Lost), 12 Month Average
Headline: US economy adds 163K jobs, rate rises to 8.3 pct.
WASHINGTON (AP) -- U.S. employers added 163,000 jobs in July, a hopeful sign after three months of sluggish hiring.
The Labor Department said Friday that the unemployment rate rose to 8.3 percent from 8.2 percent in June.
July's hiring was the best since February. Still, the economy has added an average of 151,000 jobs a month this year, roughly the same as last year's pace. That's not enough to satisfy the 12.8 million Americans who are unemployed.
The government uses two surveys to measure employment. A survey of businesses showed job gains. The unemployment rate comes from a survey of households, which showed fewer people had jobs. Economists say the business survey is more reliable.
Investors appeared pleased with the report. Futures tracking the Standard & Poor's 500 index and the Dow Jones industrial average gained about 1 percent. The stock market is coming off four days of losses. Yields on government bonds also rose after the report came out as investors moved money out of low-risk assets.
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