Rosy Jobs Report: Job Growth Accelerated in June, Wages Increase, Consumer Confidence Surges

The June Jobs Report was everything the Biden Administration could have hoped for. Job growth leaped higher last month as businesses went on a hiring spree to keep up with a rapidly recovering economy, according to the Labor Department. Nonfarm payrolls increased by 850,000 for the month, substantially above expectations.

The report also noted that wages are increasing as employers work to entice workers back into the job market, and that many individuals that had stopped looking for jobs during the pandemic are returning to work.

This is the jobs report that both economists and investors had been waiting for, signaling a return to sustainable long-term growth in the economy.

CNBC: “From a market perspective, this was an all-out positive jobs report,” said Seema Shah, chief strategist at Principal Global Investors. “The improvement today likely reflects a slight easing of the labor supply constraints that have been holding back the jobs market in recent months, as well as continued momentum from the economic reopening.”

USA Today: "The strong June employment gains "despite persistent hiring strains is likely the start of a series of stellar reports that will underpin the strongest U.S. economic performance since 1951," says economist Lydia Boussour of Oxford Economics. Oxford expects 8 million jobs to be added this year, highlighted by a couple of months with advances of at least 1 million."

And, the jobs report ends a week of generally positive economic news.

New York Times: "The report follows several promising economic developments this week. Consumer confidence, which surged in June, is at its highest point since the pandemic’s onset last year. Stocks closed out the first half of the year at record highs, and businesses’ plans for capital investments are rising. The Congressional Budget Office said Thursday that the economy was on track to recover all the jobs lost in the pandemic by the middle of next year."

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By: Don Lam & Curated Content