In a sign of good news for the American economy, the latest jobs report for August shows 201,000 new jobs were added, keeping the unemployment rate at a historically low 3.9%.
With an economy that is continuing to gain more confidence, the growth didn’t stop with just jobs. Wages grew at 2.9% over last year’s and 0.4% since July.
The Wall Street Journal also notes what that growth could mean for the rest of 2018:
Although wage growth stayed below 3% last month, the 2.9% clip is still the fastest pace since mid-2009 and could elevate expectations for the economy heading into the latter part of the year.
Weekly wages rose 3.2%. Inflation is eating away at some of those gains, but Friday’s report is a sign that overall pay appears to be firming as the labor market tightens.
While the usually-touted unemployment rate of 3.9% doesn’t give the full picture, the “all-in” unemployment rate is also showing good news. The steady decline of that rate – which includes discouraged workers and those stuck in part-time jobs – continued, dropping from 7.5% to 7.4%. As the WSJ notes, however, that is still much higher than the 3.9% and is still worrying.
Overall, however, the economic news is good. The strength of the economy will likely lead to higher interest rates, which is a positive sign after years of artificially depressed rates from the U.S. Federal Reserve. The news is also good for the U.S. on a global scale, as other countries are continuing to be left behind by the U.S.’s show of economic strength.
The biggest concerns investors have right now are centered around the President’s trade wars and rising wages amid inflation.