BEYOND THE NUMBERS
Today’s solid employment report shows the economy continuing to add jobs even though economic growth stalled in the first quarter. But the share of Americans with a job, which rose modestly in 2014, also has stalled this year and remains well below pre-recession levels. We’re still waiting for clear signs of greater labor force participation and faster wage growth that, together with a falling unemployment rate, would justify the Federal Reserve beginning to raise interest rates toward “normal” levels for a healthy labor market.
Stay tuned for my statement with further analysis.