If it weren't for wages...

The US jobs report had the good and the bad.

  • The job growth was above the 3 and 12 month averages coming at 242K vs 228K and 223K respectively.
  • The Unemployment rate remained steady at a low 4.9%.
  • The underemployment rate fell to 9.7% as well (trending down with the unemployment rate).
  • Goods producing jobs were not good, however, with Manufacturing and mining (oil?) coming in with job losses.
  • The health sector added the most (+86K). Trade, transportation (+53K) and Leisure and Hospitality (not high paying) added 48K. Professional and Business services (more high paying) added a disappointing 23K. Service jobs were up 245, the highest since October 2015

The real disappointment is in wages of course. Steps were being taken to the upside with at peak YoY of 2.6%, but now that is back down to 2.2%. If it weren't for wages, but it is, what it is.

The below is another look at the job distribution over the last 12 months and vs. this month from a raw jobs perspective and percentage of the job total perspective. The most jobs are in health (aging baby boomers) then Professional and business over a 12 month period. This month the health was a larger percentage while Prof and Business services lagged well below the 12 month average.