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

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Aug 03, 2012, 08:55 ET

NEW YORK, Aug. 3, 2012 /PRNewswire/ --

Surprising Strength
After a string of disappointing economic data releases, the 163,000 gain in July payrolls offers some hopeful news. While the monthly gain is still relatively small by historical standards, it might help spark somewhat higher consumer optimism and spending. This, in turn, could lift growth moderately higher in Q3, from the moribund 1.5-percent pace recorded in Q2. However, lackluster demand remains the biggest corporate challenge in the second half of 2012. Without a large improvement in confidence and spending, job gains are unlikely to gather steam. Moreover, the labor market could easily slip back to the moribund growth of spring and early summer, extending an already unusually long "jobless recovery" farther into the foreseeable future.

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