This jobs report is not as strong as it looks. While this month’s number is in line with expectations, last month’s anemic number was even worse upon revision.
While this news is not good, markets opened like it was. What we may be seeing here is anticipation of the Fed staying looser even longer than expected.
It is important to note that, while job growth has been relatively strong for some time, that growth has not been fully translated into economic opportunity. Last quarter's GDP number was a fraction of a percent, and well short of already dismal expectations. Even more, growth has disappointed throughout the six-year post recession period. The bottom line here is that, while we see parts of the labor market doing well, the more important driver of economic opportunity -- i.e., productivity -- continues to go missing.