Despite the sad numbers of recent weeks, things have turned up just in time for Labor Day. Well, sort of.
The government said Friday that the unemployment rate fell one-tenth of one percent in August, reports the New York Times, and there were more jobs added in August than in July. The number was 128,000 to be exact. On the other hand, the paper reports that fewer hours are being worked and wages are steady.
The 121,000 new jobs in July and 128,000 in August are not enough to keep up with the expanding population but it will certainly be taken as the “Goldilocks” number by economists: Not too many and not too few but just right to keep the economy moving ahead smoothly without inflation or interest rate hikes. The market reacted by closing on a three-month high.
And some of those August jobs might have been created by the healthy consumer spending in July. Personal spending rose 0.8 percent in July, adjusted for seasonal factors — the sharpest increase since January, reports the Times. By contrast, personal income rose 0.5 percent in July, largely in line with the pace of the last several months.
One analyst tells the paper that predictions about third quarter GDP will now be revised upwards. Sounds like a happy note to start the Labor Day weekend.

