So, the data is in and we got another decent jobs report. Not only did nonfarm payrolls increase by over 200,000, there were also net revisions upward to prior data. The consistent net revisions upward demonstrates that momentum in the labor market in the US is to the upside and that previous months' data underrepresented the net addition to payrolls.
The number everyone is looking at is the labor force participation rate. Even though the data have started to turn up, the labor force participation rate is lagging. It has stalled and even declined in recent months. Last month it hit a 30-year low. This rose to 63.9% from 63.7% with the employment population now at 58.6%. A rising labor force participation rate is always seen as a sign of a more robust economy, while a falling rate is a s...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.