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Despite earlier concerns about what the June employment data might bring, the Bureau of Labor Statistics report shows that the Trump economy is thriving, with employment growing.
Economic analysts predicted that jobs would likely grow by just 110,000, but the official data indicates that nonfarm payrolls increased by 147,000. The April numbers were also revised up to 158,000, an 11,000-job increase.
Financial Planner Mark Tepper spoke about the impressive job growth this morning on Fox Business, saying, "I don't think very many people were expecting a number that solid. In fact, one of the things I was potentially looking for was for the number to possibly come in below 80,000, and that could have forced Chairman Powell to actually cut rates."
Tepper went on to say that this report, despite showing strong job growth, still suggests that rates should be cut because much of that growth was due to government hiring at the state and local level, rather than strong private-sector growth.
He explained, "Small businesses are unable to access capital because rates are too high. That is preventing them from moving forward and engaging in some of their pro-growth initiatives that they had planned to roll out this year."
Tepper also suggested that some of the weaker private-sector job growth could be a sign that the President's immigration crackdown is working, and fewer illegal aliens are getting American jobs. That could lead to stronger wage growth further down the line.