National Association of Federal Credit Unions (NAFCU) Chief Economist Curt Long issued the following statement in response to the Labor Dept.’s June employment report.
“The June jobs report will come as a sigh of relief. Despite a downward revision to the already weak May figure, the rebound in June means that the average monthly gain in 2016 exceeds 170,000, which is more than enough to absorb new entrants. The participation rate also saw a mild bounce back after dropping in the previous two months. Meanwhile, wage growth remained subdued, but it continues to outpace inflation and is consistent with a tightening labor market,” said Long. “While numerous landmines remain on the economic front, policy makers can at least be reassured that the labor market remains a bright spot. Nevertheless, this does not change the outlook for the Federal Reserve, which is unlikely to raise rates until the fourth quarter at the earliest.”