Embracing Employment

June net job growth was much stronger than expected, and well above a sustainable pace at 372,000. Moreover, the labor force participation dipped by a tenth to 62.2%. The Fed will raise the Fed funds rate by another 75bps at their July meeting. Employment is now down just 524,000 from its pre-Covid peak, wage growth is slowing, and while GDP and financial data scream recession, we aren’t there, yet.