The news that came out today on the June and July jobs reports sounded ominous. Why weren’t we adding the expected amount of jobs? What is happening to our workforce? There are some other numbers that need to be looked at to put the jobs report in perspective. The Workforce Participation Rate has been steady but dropping slightly since April–it was 62.6 in April, 62.4 in May, 62.3 in June, and 62.2 in July. We have no way of knowing how many of the federal employees who were laid off were reflected in those numbers. The unemployment rate in June was 4.1 percent and 4.2 percent in July. Again, not a serious increase.

There is, however, a number that is being overlooked.

On August 1st, this chart was posted at X:

American workers are coming back into the labor force.

We are in a period of transition. Inflation is down and wages are up. The federal government is shrinking and jobs are being moved into the private sector. The Stock Market did not like the jobs report, but as the report and the other numbers involved are analyzed, the Stock Market will rebound.

The important thing now is to hang on to your hat, celebrate the slowing of inflation and the cheaper fuel prices, and wait out the bumps.