So, does the economy need the human resources you provide? That is really how the question should be posed when analyzing the jobs report. When we talk about the economy, we are really saying how well is the mix of ingredients, i.e. our capital, labor, entrepreneurship doing in producing output.
Given our technology and pursuit of efficiency, increasing output doesn’t necessarily mean increasing employment of labor unless we are willing to use the type of technology that requires more labor.
That said, this jobs report looked pretty mixed. Although 164,000 jobs were created in July, 37,000 Americans left the labor force. The numbers looked better for Black Americans who enjoyed a full percentage point decrease in their unemployment rate and 228,000 blacks added to payrolls.
Given that we are over-indexed in retail and food services, and these areas saw increases in employment, there is probably some temporary work/summer employment activity going on in this type of work accounting for the increase in hiring.
Is this growth in employment the result of government policies? I doubt it. I don’t see how the Obama Administration or the Federal Reserve is impacting whether a person gets a job at Wendy’s or Walmart …