Years of strong hiring have reduced layoffs in the U.S. to the lowest level in decades.
The number of people who applied for unemployment benefits at the end of August rose a little but there was no sign of rising or widespread layoffs.
Initial jobless claims rose by 1,000 to 217,000 in the seven days ended August 31, 2019. Jobless claims rose the most in Illinois, but they fell in Florida and New York to offset much of the rise.
The monthly average of new claims rose by 1,500 to 216,250.
Continuing claims fell by 39,000 to 1.66 million.
The strong labor market is offsetting some of the negative effects of the China trade war. Americans are spending more than enough to keep demand high and encourage companies to maintain employment. As long as that dynamic continues, the U.S. economy should be all right.
The nonfarm private sector in the U.S. added over 50,000 more jobs in August than economists expected.
The private sector added 195,000 jobs last month, according to the ADP National Employment Report. Economists polled by The Wall Street Journal were expecting 140,000 jobs. Once again, we have the mainstream media underestimating the bullish case for the U.S. economy.
August had the most growth in private-sector jobs since April when the sector added 255,000 jobs.
The bottom line: The economic data shows that there’s no problem with the U.S. economy yet. Fears of yield curve inversion and trade wars have been overblown in the mainstream media.