The Sobering Lesson of a Good Jobs Report

on , from bloomberg.com

The improvement in the U.S. labor market is certainly good news. It could soon become a headache, however, if it persists alongside disappointing economic growth. The economy added 255,000 jobs in July, after adding 292,000 in June. Employment growth was weaker earlier in the year, and two solid months don’t make a trend -- but even so, the labor market is in pretty good shape. The unemployment rate stands at just 4.9 percent, yet the economy keeps drawing workers back into the labor force and creating new jobs. The problem is that economic activity, according to the most recent indications, remains subdued. The implication is that ... (Read the full story)