Solid Jobs Report

By ,   October 3, 2014

Avatar of

Once again the growing strength in the U.S. economy was reflected in the jobs report this morning.  Actual jobs for the month of September increased 248,000 vs. a consensus estimate of 215,000.  Further, the unemployment rate ticked down to 5.9% also surprising analysts.  

The labor force participation rate continues to decline and the “underemployed” rate ticked down as well.  We feel this lends more credence to the idea that the labor market is tightening due to retirement of Baby Boom workers rather than limited job opportunities for available workers.  

We are still not seeing wage pressure in the data.  Even though there are continued rumors of a “skill gap” in certain industries, (if it exists) it does not seem to be significant enough as to be manifesting itself on a national level and thereby requiring employers to pay more to get the skilled labor they need.

Here’s a quick overview of the Labor Market –  <Click Chart to Enlarge>

Freeman - Holderness Labor Overview

 

Sources: Thomson Reuters Eikon