Grinding Growth

Friday’s job report showed continued but grindingly slow labor market improvement. Net job growth totaled 223,000 which was OK and the unemployment rate fell to 5.4% from 5.5%. Those working part-time because they can’t find full time work fell by 125,000, average wage growth didn’t improve and the labor-force participation rate improved marginally. Markets were thrilled; the US economy is growing but not fast enough for a June rate hike.