Jobs reports show labor market still strong

Jobs reports show labor market is still strong

Thursday and Friday's employment and unemployment reports were a big surprise, suggesting the U.S. economy is still a strong generator of jobs. Friday's job report sent the stock markets soaring.

SAN FRANCISCO - Thursday and Friday's employment and unemployment reports were a big surprise, suggesting the U.S. economy is still a strong generator of jobs.

Friday's jobs report sent the stock markets soaring.

"Surprisingly, surprisingly strong. A 177,000 job gain. The employment rates stayed pretty much the same at 4.2%," said employment lawyer and former EDD Director Michael Bernick.

"So far, the DOGE impacts have been negligible. We had a loss, a very minor loss in federal jobs," Bernick added.

It is much-needed good economic news, in a sea of bad news, for President Trump.

"So far, the tariffs haven't had the impact suggested in much of the media narrative," said Bernick.

Even Thursday's jobless claims report showed no significant increases.  

"Shows the labor market, despite all the gloom and doom talk, all the claims that the economy is collapsing, at least the labor market is remaining strong," he said.

Some say that the Trump Administration's Bureau of Labor Statistics is ginning up the numbers.  

But to Bernick, the numbers, subject to revision, must be relied on.

"The fact is, it's a highly, highly professional organization, completely apart from politics," said Bernick.

"Despite all of this talk and some of the poll data concerning consumer sentiment going down, the stock market declining, employers indicating some hesitancy; despite all that the labor market is remaining strong," he said.

However, the future of employment remains uncertain.

"Perhaps, it doesn't reflect employment impacts that we'll see in the next couple of months as consumers and companies have loaded up before the tariffs. It may be, but we don't see anything yet in the data," said Bernick.

Health care remains, as usual, the big winner, with gains of more than 50,000 jobs.

Transportation and warehousing also did well, but the tariffs have yet to fully kick in.

"I think, going forward though, a lot will depend on how the tariff negotiations go," said Bernick.

That is also very uncertain given the pushback from key trading partners.