Today’s data release from the Department of Labor shows that the US economy has added back all the jobs lost five years ago in the depths of the Great Recession. For the month of May, the US Economy added 217,000 jobs and the unemployment rate was at 6.3%.
This is certainly some good news for the economic recovery, but as others will point out, the total US population over the age of 16 has grown by some 14 million during the post recession recovery. So while total jobs have increased, the percentage of the population looking for work is still elevated.
I don’t make investment decisions based on macro issues, nor does a single data point like the unemployment number. What does matter is the big picture and I’ve been watching this data for signs that the economy’s growth is accelerating. Accelerating growth will be the catalyst to rising interest rates, which would impact our investment holdings.