The US economy continued robust job creation in July, with the unemployment rate falling back to a 16-year low amid strong hiring in restaurants and health care, government data showed.
The labor-force participation rate, a measure of the share of people with jobs or looking for employment, was 35% for teens in July.
In raw numbers, the U.S. has added 16 million net jobs over the last seven years, about twice the number of jobs lost during the recession, according Labor Department figures. Year over year, the number of people not in the labor force rose from 92.92 million to 93.24 million, while the number of people who now want a job dropped from 6.2 million to 5.7 million.
Lack of strong wage growth is surprising given that the economy is near full employment, but July's monthly increase in earnings could offer some assurance to Fed officials that inflation will gradually rise to its 2 percent target.
In July, the average hourly earnings rose 9 cents, or 0.3 percent, to 26.36 USA dollars, faster than the 0.2 percent in June. Now average hourly earnings are up a decent 2.5 percent on a 12-month basis.
The Bureau of Labour Statistics reported that the U.S. economy added 209,000 jobs last month, higher than the 180,000 expected by economists.
The president promised this morning that he will continue to roll back "stifling regulations" that hurt jobs. McDonald's (MCD) said in mid-June that the fast-food chain and its franchisees will add 250,000 workers this summer - more than the Golden Arches hired a year ago. "Are we going to see more wages increase for USA workers?" Within that data, the number of people working part-time for economic reasons fell by 44,000 to 5.28 million.
That's well below the 3.5 percent to 4 percent that is typical when the unemployment rate is this low. In addition, the previous two months were revised upward by 47,000 jobs.
The U.S. trade gap narrowed sharply in June as a strengthening global economy pushes up demand for American exports overseas. Those are signs the labor market is further tightening.
There was also solid job growth in the United States last month with 209,000 jobs added, well above expectations. There's one school of thought that work is a substitute for school, and that kids who have to work are worse off than those who can go to school instead, Harrington said.
"Wage growth remains sluggish", Chris says.