Work Worry

July net job growth cooled to 187,000, the second straight month below 200,000, and the weakest two-month performance, excluding Covid, since 19Q4. The cooling’s good, but the unemployment rate fell to 3.5% due to an aging population, a near 53-year low. Additionally, wages rose 0.4% M-o-M, 4.9% Q-o-Q and 4.4% Y-o-Y, suggesting intensifying wage pressure and the workweek shrank, suggesting employers are hoarding workers. The labor market remains too hot.