Futures extend gains after strong employment data

  • Futures extend gains after strong employment data

Futures extend gains after strong employment data

Wage growth should eventually pick up and return to more normal levels as the overall labor market improves.

With the labor market continuing to make steady improvements, talk has cropped up about the economy approaching full employment - but that's far from the case for teenagers. That leaves room for additional gains that would back up President Donald Trump's drive to bring people back into the workforce as well as support the Federal Reserve's go-slow approach to tightening credit. The 222,000 jobs added in June were revised up to 231,000. It's expected to show no big improvement in the pace of wage growth. One reason that's not happening may be that employers are hiring workers who were left behind during the recession and are happy to be finding jobs at all. The dollar also climbed, potentially saving it from a fourth straight weekly decline after the greenback weakened to the lowest since 2015.

The unemployment rate in western Alberta has dropped two per cent in the past year.

July's underemployment rate (the U-6 unemployment rate), which includes those out of work and those working part-time but who would like to have full-time work, stood at 8.6%, unchanged from June. As was seen under the prior administration, unemployment dropped while labor force participation plummeted to a 39-year-low. Wage growth rose 2.5% in July from a year earlier, not unbelievable but steady and right in line with expectations. "However, we're starting to see a trend for that particular group with modest rises in labor force participation and downward ticks in unemployment", she said. Workers unemployed for less than 14 weeks decreased 88,000, while the number of long-term unemployed, those jobless for 27 weeks or more, increased 121,000 and accounted for 25.9% of the unemployed.

President Trump, who only previous year was calling similarly buoyant job-creation numbers a "bubble", this morning was taking credit for the July figures, "and I have only just begun", he wrote in a tweet 15 minutes after the U.S. Labor Department announced the jobs numbers.

The United States has added 1.07 million jobs during Trump's six months in office.

After July's interest rate increase, markets are looking to focus on whether there will be a follow-up rate increase before the end of 2017.