Mixed Messages

Last Friday’s employment data had something for everyone. Payrolls grew by a whopping 248,000, the unemployment rate plummeted to 5.9%, its lowest level since 7/08, and the number of involuntary part-time workers declined. But the labor force participation rate fell from 62.8% to 62.7%, average hourly earnings fell last month and are up only 2% year-over-year from 2.1%, and labor productivity growth is lousy; partly why wage growth stinks.