Comment on U.S. Bureau of Labor Statistics Employment Situation Report Kathy Bostjancic, Director for Macroeconomic Analysis, The Conference Board

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Aug 05, 2011, 09:08 ET

NEW YORK, Aug. 5, 2011 /PRNewswire/ --

Job Growth Stuck on Slow

After two very disappointing jobs reports, employment increased a little faster in July. The key is the slow pace of hiring in "core" services (which excludes health and education). And the key to any pickup in job growth is an improvement in overall economic demand, especially from the consumer sector. With gasoline prices, but not grocery prices, easing, there could be a little more spending elsewhere. But that suggests only slow improvement at best through the second half of 2011. There is no help on the way from monetary or fiscal policy, at the federal, state, or local level. Businesses, however, appear to believe they can maintain profits while adding cautiously to payrolls. If that is true, the labor market will slowly come back, but it's a long way back.

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