CNBC analyst Rick Santelli was beside himself Friday when he reacted on air to the latest federal data showing that US employers added 528,000 new jobs in July — more than double the expected number.
“It’s a piece of shit!” Santelli told CNBC’s “Squawk Box” on Friday.
Economists expected there to be another 250,000 jobs in July, prompting Santelli to say, “528,000! 528,000, pretty much double expectations! And 528,000 is the best number since February when we were over 700,000, revisions to the last two months is 28,000.”
Maria Bartiromo, the Fox Business news anchor, was similarly shocked when the latest jobs numbers were released Friday morning.
“Wow, that’s pretty incredible,” Bartiromo, a staunch critic of the Biden administration, said on air when told of the numbers.
While the strong job market and record low unemployment levels continue, analysts said that does not necessarily bode well for the Fed’s efforts to bring down soaring levels of inflation.
Wall Street’s major indexes fell in response to the latest jobs report as investors look for more aggressive rate hikes from the central bank.
“The tinder-box hot job market indicates that the Federal Reserve’s determination to fight inflation is not bearing fruit yet,” Sung Won Sohn, an economics professor at Loyola Marymount University, told The Post.
Sohn cited labor shortages in key sectors of the economy, including airlines, leisure and hospitality and restaurants.
“The sluggish labor force participation rate shows that workers are not yet worried about a recession and willing to wait for better opportunities,” Sohn said.
“The 5.2% wage gain from a year ago is not enough to entice them to come back to work.”
The Dow Jones Industrial Average was down 0.05% at 10:23 a.m. Friday, while the S&P 500 fell 0.08%. The Nasdaq fell 0.04 percent.
“This is a job market that just won’t stop,” Becky Frankiewicz, president and chief commercial officer of ManpowerGroup, told The Post.
“Economic indicators signal caution, but US employers signal confidence.”
Jeffrey Roach, chief economist for Charlotte-based LPL Financial, told The Post: “The decline in unemployment and the participation rate will frustrate central bankers since a tighter labor market adds inflation risk to the economy.”