Wages Grow 3.2%. But Is That Enough? | S3 E157 | 08-07-26
The July jobs report landed with a surprise this morning, and it wasn’t the good kind. Economists expected the U.S. economy to add 80,000 jobs. Instead, it lost 23,000, and the prior two months were revised lower. Megan breaks down what happened underneath that headline number and what it means for the Fed’s next move.
Here’s the part that confuses a lot of people: the unemployment rate actually fell to 4.1%, its lowest level in about a year, even as jobs disappeared. That’s not necessarily good news. Megan explains why a shrinking labor force, not new hiring, is driving that number, and why real wages have now been negative for five straight months even as consumers keep spending.
In this episode, Megan covers:
- Why the economy lost 23,000 jobs when 80,000 were expected
- How the unemployment rate fell to 4.1% even as jobs declined
- Why the labor force participation rate dropped to its lowest level since 1976
- Where jobs are still growing, including construction and manufacturing tied to the AI buildout
- Why real wages have been negative for five consecutive months
- What this report means for the Fed heading into its September decision
If you’re trying to make sense of a jobs report that seems to contradict itself, you’re not alone. Give this one a watch, and subscribe if you want these numbers explained in plain English every week.
For a history of all Markets with Megan episodes, visit: https://marketswithmegan.FM
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