At 4.6%, the unemployment rate is no reason for doing a victory dance, not when you consider the continuing decrease in the number of people in the labor force. This includes not only those who are employed, but the unemployed who are actively looking for work. At 178,000 increase in non-farm payroll jobs, the number exceeds the the historical monthly average necessary to absorb available labor while maintaining full employment.
With inflation pressures and bond yields rising, and the likelihood of an increase in rates by the Federal Reserve, the United States may see increases in hourly wages going into 2017. How long this lasts, whether it will be across the spectrum of jobs, and how much capital will be added to the new administration’s political capital accounts remains to be seen.