So far in 2016, an average of 192,000 jobs a month have been added, wages have been growing as fast as they have since the recovery began, and households are more likely to spend money, leading to the biggest jump in purchases in seven years,The Washington Post reports.
The question that follows all of this positive news is simple; can it be sustained? That’s where the waters get a bit muddied. The most recent jobs report showed an anemic 38,000 jobs added in May, far below analysts’ projections. Conversely, though, the unemployment rate dropped down to 4.7 percent. These totals seem to be conflicting, which makes trying to predict what will happen in the future much more difficult.
Even with the number of jobs added in May being disappointing, the economy has still added jobs every month for more than six years, a good sign regardless of how you spin it.
Another good sign can be found in wage growth, which hovered around 2 percent growth for years following the recession but has now inched up to growth of about 2.5 percent. Increased wages combined with low inflation and a drop in gas prices have greatly helped to ease the stress on many budgets across the country.
PB Topical Ref
