CNBC analyst Rick Santelli was on air Friday to discuss the latest federal data showing that American employers added 528,000 new jobs in July – more than twice as much as expected.
“This is cool!” Santelli told CNBC’s “Squawk Box” on Friday.
Economists had expected an additional 250,000 jobs in July, prompting Santelli to say, “528,000! 528,000, basically double what was expected! And 528,000 is the best number since February when we were over 700,000, a correction of 28,000 in the last two months.
Fox Business anchor Maria Bartiromo was also stunned when the latest jobs data came out Friday morning.
“Wow, that’s pretty incredible,” Bartiromo, a vocal critic of the Biden administration, said on air when she was told the numbers.
While a strong labor market and record low unemployment remain, analysts said this is not necessarily a good effort by the Fed. reduce the sky high inflation rate.
Wall Street’s main indexes fell in response to the latest jobs report as investors braced for more aggressive interest rate hikes by the central bank.
“The hot labor market shows that the Federal Reserve’s determination to fight inflation is not yet bearing fruit,” Sung Won Sohn, an economics professor at Loyola Marymount University, told The Post.
Sohn cited labor shortages in key sectors of the economy, including airlines, leisure and hospitality and restaurants.
“The lethargic labor force participation rate suggests that workers are not yet worried about the recession and are willing to wait for better opportunities,” Sohn said.
“The 5.2% wage increase from a year ago is not enough to tempt them back to work.
The Dow Jones Industrial Average was down 0.05% at 10:23 a.m. Friday, while the S&P 500 was down 0.08%. The Nasdaq shed 0.04 percent.
“This is a job market that just won’t go away,” ManpowerGroup President and Chief Commercial Officer Becky Frankiewicz told The Post.
“Economic indicators show caution, but American employers show confidence.”
Jeffrey Roach, chief economist at Charlotte-based LPL Financial, told The Post, “Falling unemployment and the participation rate will wreak havoc on central bankers as the labor market tightens. increases the risk of inflation to the economy”.