Too Soon to Call a Rebound in Jobs

It’s too soon to a call a rebound in jobs, but that’s exactly what many analysts did last Friday upon reviewing the latest employment data. The positive reading of the July numbers found support in the equity market, as well, which pushed the S&P 500 to its highest level since May. Treasury yields inched up, as well, as investors found an offset to an otherwise disappointing spate of economic reports.

There were some clear positives in the labor report. Following several months of shrinking net gains, the Establishment Report showed private employers adding 172,000 jobs during July. Hiring was concentrated in education and health services, as well as hospitality employment and manufacturing.