Breaking News on Compensation and Employment ... Wages Stagnant ... Jobs Growing ... Continuing Gradual Growth Lies Ahead

The unemployment rate has dropped to 5.9% as jobs grew nearly 250,000 last month. That's the good news.


Wages didn't rise. That's the bad news. And the good news too.


Inflation isn't an issue, energy prices are coming down and the dollar is strong, thus making import prices cheaper. We are in a low inflation economy where interest rates are low as well, albeit higher than other countries' borrowing rates. That's why the dollar will stay strong.


More to come but it's good news, all things considered. And especially so for individual investors.


U.S. adds 248,000 jobs in September, unemployment falls to 5.9% has the summary:


"The United States created 248,000 jobs in September and hiring in August turned out to be a lot stronger than initially reported, showing the U.S. economy entered the fall with rising momentum.


The unemployment rate also fell to a six-year low of 5.9%, dropping below the 6% mark for the first time since 2008, the Labor Department said Friday. More people found work while others dropped out of the labor force to send the unemployment rate lower. Economists . . . had expected an increase of 220,000 nonfarm jobs last month.


In September, professional job increased by 81,000 while retailers, health-care providers and construction companies also posted strong job growth. The amount of time people worked each week rose a tick to 34.6 hours to reach a postrecession high.


Hours worked usually rise when the economy strengthens. Yet average hourly wages fell a penny to $24.53, reducing the 12-month increase to 2% from 2.1%. Slow wage growth continues to hold economic growth back despite widespread signs of progress."


Summing Up


All in all, a good news report.


But the improvement in our economy remains gradual and will continue to be so.


Inflation isn't an issue, but wage growth is.


We need more good jobs, and for that we need higher economic growth, and to accomplish that we need to enable the private sector to do so --- not the government.


Tax reform and approval of the Keystone pipeline would be a good place to start.


That's my take.


Thanks. Bob.