Ignore the Campaign Talk! Labor Market Strongest in 15 Years

Listening to Donald Trump and Hillary Clinton speak about jobs on the campaign trail, it's hard not to believe that the labor market is a mess. The fact is that the labor market is the strongest it has been in 15 years, said Jeffrey Cleveland, chief economist at Payden & Rygel. "Layoffs are at all-time lows. Job openings are at all-time highs. We are on track to add another 2.4 million jobs in 2016. The unemployment rate is steady, despite the fact that 2.4 million people re-entered the labor force. Wage growth is picking up," said Cleveland. When it comes to inflation, however, Cleveland said the Federal Reserve is not seeing things clearly. He said the Fed keeps talking about inflation below its target and many investors say they can't spot it either, especially after the core PCE came in at 1.6% on the latest reading.