Pic-of-the-Week: U.S. Job Growth Remarkably Strong & Consistent (07/14/2014)

U.S. Job Growth Remains Both Strong and Consistent.  It has become fashionable to describe U.S. job growth as sub-par or below expectations. But a  deeper look at the data reveals something entirely different – remarkably strong and steady job growth. The U.S. labor market has improved consistently since early 2010 and is now adding jobs at a nearly 2% annual pace. In fact, job growth has now remained above 1.5% at an annual rate for more than 2 years.

A view of the short-run versus long-run dynamics in this week’s graphic illustrates just how steady and strong job growth is currently.  The 3-month rate of growth has closely matched the 12-month rate of growth for more than two years. This reflects remarkable stability in hiring. Short-run job growth the past three months is now above a 2.0% annual rate, while long-run job growth the past year is rapidly approaching 2.0%.  In short, the June 2014 job report reflects the fastest overall pace of hiring so far in the recovery. And given continued declines in the labor force participation rate, this is remarkably strong job growth relative to historical rates. If these job growth rates hold through 2014, job gains in the current recovery will outpace gains at the same point in the recovery following the 2001 recession.