Fed’s Daly Says No Job Growth Wouldn’t Necessarily Mean Weakness

Federal Reserve Bank of San Francisco President Mary Daly says zero or negative payrolls prints wouldn’t necessarily indicate weakness in the labor market when the labor force is barely growing.

• “With labor force growth near zero, a ‘zero’ or even a negative month of net job gains could be consistent with expectations and not necessarily a sign of weakness,” Daly says Friday in a blog post
• “So, what does this mean for monetary policy? First, job growth alone is unlikely to be a good metric of labor market strength or weakness,” Daly says
• “Ratios and rates like the employment-to-population ratio, ...