209K Jobs Added in July, Unemployment Rate Ticks Up to 6.2 Percent

Jobs report comes in lower than expected, shows the unemployment rate is creeping up slowly.
6:21 | 08/01/14

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Transcript for 209K Jobs Added in July, Unemployment Rate Ticks Up to 6.2 Percent
Okay. It's Friday August 1 as a markets open in New York today's big number is 209000. That's coming. -- the Bureau of Labor Statistics as were added in the month of July a little lower than expected. But not much and the employment rate -- up. It now stands at six point 2%. Hello everyone I'm Gloria Riviera in New York Wall Street had a huge sell -- yesterday which added even more pressure. To today's job report here with the details is -- and toll from Yahoo! finance hi Mike thanks for joining us. Either I 209000 is lower than expected but it's not too bad right. Not too bad at all this is the sixth straight month of more than 200000 net new jobs are created. In the US that's actually the longest such streak since the late ninety's so it actually is pretty much a story confirming. What we thought about the economy that the labor market continues to improve at a pretty decent pace. The unemployment rate as you mentioned did tick higher to six point 2%. From six point 1%. But that -- for the best of all reasons which is more people who had previously not been looking for work. Went back into the labor force. That's been one of the real themes of this recoveries are fewer and fewer people as a percentage of the population. Have been actually in the labor force a lot of people retiring lot of people discouraged so when you see the unemployment rate go up a little bit that's actually not a bad thing in this context when you're actually adding. Two -- 2000. Plus jobs a month. I would also add that the numbers for June in May. Were also revised slightly higher so essentially it's more of the same net you know we we are adding a decent number of new jobs per month but not yet quite enough. To fully incorporate all the idle workers out there. Well it's good news for the Obama administration is hammering away getting -- unemployment rate. Numbers to go down -- actually as imaging went up to six point 2% but what -- the specific causes for that and and we look ahead. And count on those continuing. We're not sure we can count on is continuing -- it. You know there was a very slight increase in the number of people who wore again looking for work this is from a different surveys -- you don't want to make too much of one month. So it's just not clear exactly how many of those long term unemployed. Are really kind of essentially permanently unemployed if it's early retirement to people -- it took disability there's all these categories of people. That -- sort of after the Great Recession have really not found their way back in the work force. But when we're around six point 2%. And in generally trending lower with -- an employment I think it's it's a fair bet to say. If that picture is going to us improve if perhaps slowly the one -- also mentioned is a big focus of Wall Street has been wage growth in the trend. In very recently of seeing a little bit more. Increasing in wages and salaries that actually was absent from this current report to essentially wage growth -- the latest month. On a year over year basis this year vs last year was up 2% which is actually pretty weak wage growth does not really mean. That workers are getting. A full participation in economic recovery but also means. That threats of inflation and perhaps higher interest rates are not -- necessarily imminent as Wall Street was -- yesterday. Well when you talk about without wage growth that makes -- -- an American labor costs a recent report finding that labor costs jumping point 7% that's but sharp. Increase from point 3% what kind of fact is not going to have on continuing bee's -- good numbers that we're seeing. Well that's the interest thing you do we're seeing some -- signals here a little bit so yes yesterday's number for the employment cost index which includes wages and benefits. Was up much more than not than investors were expecting more than economists had forecast. And this this definitely feeds a little bit of while you can call a concern if you're an investor fearing higher interest rates or you're saying it's encouragement if you would like to see. Workers get a greater share of corporate profits which they've really been lacking. In recent years so at this point we don't really have a firm trend in place we know that wage growth has picked up in recent months it seems to have stalled in July. But that's not really telling us very much about where it goes. From here -- -- do think that's going to be an area that people fixated on four really the rest of the year. Before you go I wanna get to the Fed had bitten the Dow actually down for the year as we discuss when the culprits there -- here. Over the Fed kicking up interest rates sooner rather than later you touched on and a bit. But is this still expected to -- the course for the Fed given the jobs report we're seeing today. This jobs report really does validate I think fed chair Janet Yellen -- stance which is look we know things are improving but they're not yet at a point where we think any. Rash measures -- need -- we don't really think. That inflation is really got a lot of momentum to -- -- they're not going to accelerate their timetable for raising interest rates what we do know is the Fed intends to. And it's extraordinary purchase of bonds and was doing and 85 billion a month now as well down. Two you know below thirty billion a month it's gonna go to zero in October and then the question is okay how long after that. Might we see actual interest rates increased by the -- And they're thinking maybe the middle of next year Wall Street is wondering if it's gonna have to be sooner right now this report says that the -- -- continue to be patient on that front so it's a slight comfort. To Wall Street at the moment. So that should allay fears people in layman terms being worried about things like their 401K -- or can we looked August. And expect that it might recover from yesterday's losses that we -- what do you think. No real way to say that actually I -- we're actually kind of overdue for a little bit more of a pullback and we've had so far the market is only down. Let's say three and a half percent from an all time high. Would not be surprising to see that the selling. Continue into August or or at some point later this year we've really had kind of a sideways -- a year that's being kind of digesting last year's big 30% gains in stocks so I do think got -- you have to essentially look at -- from the big picture and say we're kind of going sideways. For awhile after having a huge increase in those borrowing -- and other -- approval portfolio balances. -- -- from Yahoo! finance is always great to get your take -- in and speak with us again thanks all right thank you. Of course he can keep up with the latest headlines right here on abcnews.com. You've been watching the big number I'm Gloria Riviera in New York.

This transcript has been automatically generated and may not be 100% accurate.

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