Source: Economics Group of Wells Fargo Bank, N.A.
Another robust gain in payrolls should squash discussions that the economy is already in a recession. Employers added 372K jobs in June, with the unemployment rate holding steady at 3.6%. Wage growth eased up a touch, advancing 0.3%, but with hiring still solid, we believe the June jobs report bolsters the case for another 75 bps rate hike at the FOMC’s July 27 meeting.
No Signs of a Recession from the Labor Market
If the economy is in a recession, employers have not seemed to notice. Despite clamors that the economy may already be in a recession due to the possibility of two consecutive negative quarters of GDP growth (a view we do not share), the labor market continues to plow forward, supporting aggregate income and limiting the havoc wrought on spending by high inflation. READ FULL ARTICLE>>