WEBVTT - US Acting Labor Secretary Julie Su Tasks Jobs Report

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<v Speaker 1>Joining us now.

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<v Speaker 2>I am thrilled to say we have acting Labor Secretary

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<v Speaker 2>Julie Sue along with our own Ann Mary Hordern, and

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<v Speaker 2>it's great to have you with us.

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<v Speaker 1>Obviously a big reaction to this job's report.

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<v Speaker 2>So we had a one hundred and fourteen thousand increase

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<v Speaker 2>in payrolls. You actually spoke to us back in June

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<v Speaker 2>and said that we were looking at the definition of

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<v Speaker 2>a soft landing as you parsed through these numbers, would

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<v Speaker 2>you still say that today.

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<v Speaker 3>Hi, thank you.

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<v Speaker 4>It's so good to be here. I mean, we you know,

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<v Speaker 4>look at the three month average. The three month average

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<v Speaker 4>in growth is still one hundred and seventy thousand jobs. Remember,

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<v Speaker 4>you know, we spent a year talking about how the

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<v Speaker 4>numbers were too high and too hot, and we had

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<v Speaker 4>always planned for a transition to a more sustainable, steady

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<v Speaker 4>level of growth. This number did come in below expectations.

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<v Speaker 4>It's still over one hundred thousand jobs. It's still broad based.

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<v Speaker 4>We saw growth in multiple industries. We saw it in construction,

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<v Speaker 4>we saw it in in healthcare, we saw it in

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<v Speaker 4>leisure and hospitality. There was a dramatic drop in one

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<v Speaker 4>industry information, but generally you know, this is an indicator

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<v Speaker 4>of continued strength in the economy, and when you look

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<v Speaker 4>at other things, including labor force participation, which is at

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<v Speaker 4>an all time high for prime age workers. And we continue,

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<v Speaker 4>you know, know that there's continued work left to do

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<v Speaker 4>to make sure that we maintain a strong economy. But

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<v Speaker 4>we're still at a three month average of above the

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<v Speaker 4>number that President Biden said a year ago we need

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<v Speaker 4>to be to have a sustainable, strong labor market in

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<v Speaker 4>a strong economy.

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<v Speaker 3>The unemployment rate came in at four point thirty percent,

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<v Speaker 3>and Claudia Sam has already said that this has now triggered.

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<v Speaker 3>There's some rule which basically means a potentially around the

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<v Speaker 3>cusp of a recession. How concerned are you and the

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<v Speaker 3>White House about that?

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<v Speaker 4>Well, we're not concerned about that specifically in heart because

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<v Speaker 4>the unemployment rate that it grew from has been so

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<v Speaker 4>historically low and has been so historically low for such

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<v Speaker 4>a long time. I believe even Claudia Sam herself expressed

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<v Speaker 4>some questions about whether the rule applies when you start

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<v Speaker 4>at a at four percent or just above four percent

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<v Speaker 4>unemployment rates. So again we have to keep in mind,

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<v Speaker 4>you know, these numbers come in not in a vacuum,

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<v Speaker 4>but as part of a overall picture of an economy

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<v Speaker 4>that we've been talking about for some time that did

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<v Speaker 4>not happen by accident, that was not inevitable, in which

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<v Speaker 4>there's been tremendous growth and an economic recovery that is

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<v Speaker 4>frankly the envy of the world. And so we know

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<v Speaker 4>that the work is not finished. We know that, you know,

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<v Speaker 4>you don't get you know, we don't stop doing the

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<v Speaker 4>work that we've been doing. But one example of the

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<v Speaker 4>effectiveness of the President's economic policies is that some of

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<v Speaker 4>the growth is being driven by private investment into areas

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<v Speaker 4>in which the President's Investing in America agenda has brought

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<v Speaker 4>in public and that and so those investments continue to

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<v Speaker 4>hit the street, will continue to keep delivering them in

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<v Speaker 4>different communities, and we'll continue to watch the numbers.

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<v Speaker 2>And of course we're continuing to watch the numbers. We're

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<v Speaker 2>also watching the sotock market reaction right now because we're

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<v Speaker 2>seeing a big wipeout in futures, and the conversation that's

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<v Speaker 2>happening among investors, among market participants is this concern that

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<v Speaker 2>the Federal Reserve is behind the curve that they waited

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<v Speaker 2>too long to.

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<v Speaker 1>Cut interest rates. Is that the view of the White

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<v Speaker 1>House as well?

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<v Speaker 4>I mean, we don't comment on Fed policy. I know

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<v Speaker 4>they have they've indicated plans and what they are likely

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<v Speaker 4>to do. You know, we still believe that this is

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<v Speaker 4>an economy that again did not recover by accident, but

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<v Speaker 4>also is one that reflects, you know, the Biden Harris

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<v Speaker 4>commitment to working people. The real wages remain up over

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<v Speaker 4>the year, They're still higher than the rate of inflation. This,

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<v Speaker 4>as I've said over and over again, means more money

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<v Speaker 4>in the pockets of working people. And some of the

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<v Speaker 4>story that's not part of the labor market data is

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<v Speaker 4>that we continue to see more workers join unions, more

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<v Speaker 4>workers reach first union contracts, more contracts result in record

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<v Speaker 4>wage increases. Those are all further indicators of what we

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<v Speaker 4>believe is part essential to a strong economy, which is

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<v Speaker 4>that working people do well, working people share in the

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<v Speaker 4>profits that they help create, and working people get a

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<v Speaker 4>voice at the table.

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<v Speaker 3>We had Governor J. B. Pertzger though, yesterday, talking about

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<v Speaker 3>the loss of manufacturing jobs in Illinois, calling on the

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<v Speaker 3>Federal Reserve to move if.

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<v Speaker 1>The White House is not going to take a stance.

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<v Speaker 3>I imagine more Democratic leaders are going to come out

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<v Speaker 3>and also say that this partially may blame the FED

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<v Speaker 3>because it is an election year and they don't want

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<v Speaker 3>themselves to be blamed. How concerned are you that FED

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<v Speaker 3>potentially acted in a way that means that more Americans

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<v Speaker 3>would be losing their job.

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<v Speaker 4>I mean, you know, manufacturing is a good example, right

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<v Speaker 4>of something President Biden has said from the very beginning

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<v Speaker 4>that we need to bring manufacturing jobs back to the

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<v Speaker 4>United States. We need to make sure that the iconic

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<v Speaker 4>industries like the auto industry that have powered this country's

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<v Speaker 4>middle class continue to do so. You know, Illinois is

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<v Speaker 4>a place where, due to the uaw's historic contract, the

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<v Speaker 4>President I travel to Belvedere, Illinois, talking about factories that

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<v Speaker 4>are going to open that have been closed for a

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<v Speaker 4>really long time. These reversals of decades long trends that

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<v Speaker 4>were not good for workers, that were not good for

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<v Speaker 4>unions due to failed policy of the past, cannot be

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<v Speaker 4>reversed overnight. But we are seeing movement, and so that progress.

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<v Speaker 3>But Julie, many industries barely grew. Manufacturing retail information all

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<v Speaker 3>negative over the last two months.

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<v Speaker 4>If you look at manufacturing since President Biden came into office,

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<v Speaker 4>those numbers are up, and there's continued investments that making.

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<v Speaker 4>If you look at construction jobs, those are also up.

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<v Speaker 4>Those are two areas in which, again federal investments are

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<v Speaker 4>helping to drive that change, helping to drive that growth.

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<v Speaker 4>And so we don't make too much of any one month,

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<v Speaker 4>but when you look at the trend, those are both

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<v Speaker 4>sectors that are up. Doesn't mean we don't have more

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<v Speaker 4>work to do, doesn't mean there aren't communities that remain

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<v Speaker 4>devastated from failed economic policies in the past that have

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<v Speaker 4>failed working people, that have left working people behind. We

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<v Speaker 4>remain committed to doing that work, and the overall numbers

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<v Speaker 4>still demonstrate growth there, and we'll continue to put dollars

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<v Speaker 4>into communities to rebuild them and bring jobs back.

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<v Speaker 2>And parsing through these numbers, it did seem that manufacturing

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<v Speaker 2>payrolls did add a thousand jobs last months, but to

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<v Speaker 2>Amory's point, that comes after two straight months of declients.

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<v Speaker 2>I want to talk about revisions here because on the

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<v Speaker 2>top headline number, there was another revision to last month's number,

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<v Speaker 2>and we've seen that increasingly over the past several months

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<v Speaker 2>that the prior month's numbers are revised down.

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<v Speaker 1>And I'm curious what your thoughts are is to why.

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<v Speaker 2>That dynamic is unfolding, because again the question among investors

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<v Speaker 2>is how do I trust these numbers?

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<v Speaker 4>Well, you not at the top that the this month's

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<v Speaker 4>revisions were fairly minor revisions. I always say this too,

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<v Speaker 4>are a feature of the numbers, not a bug. It's

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<v Speaker 4>not a it's a it's not an error. It's basically

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<v Speaker 4>continuously these numbers get revised because it's the trade off

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<v Speaker 4>between getting in out numbers quickly and UH and getting

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<v Speaker 4>complete numbers. So to get the numbers out every single

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<v Speaker 4>month as we do it requires a certain amount of

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<v Speaker 4>of projection and then once the real data comes in

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<v Speaker 4>because these are these aren't just numbers. These are actual people, right,

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<v Speaker 4>They're people who respond to surveys, They're people who answer questions.

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<v Speaker 4>They don't always answer them at the time that I

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<v Speaker 4>come here to talk about it. And that's why we

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<v Speaker 4>revise when we get the more accurate numbers. That has

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<v Speaker 4>always been the case, and that is why the BLS

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<v Speaker 4>data is the gold standard when it comes to labor

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<v Speaker 4>marketing information.

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<v Speaker 3>If we have four point three percent today, where do

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<v Speaker 3>you see the unemployment rate year end.

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<v Speaker 4>Well, I'm not going to make a prediction about that,

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<v Speaker 4>but i will say again we look at everything in

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<v Speaker 4>the context of the whole and so GDP remains very strong,

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<v Speaker 4>layoffs remain relatively low, the labor force participation rate remains high.

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<v Speaker 4>All of these are counter indicators, they're not indicators of recession,

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<v Speaker 4>and so of course we keep an eye out. Of course,

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<v Speaker 4>we have to keep on doing the work that we

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<v Speaker 4>are doing, and you know, we do want the economy

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<v Speaker 4>to reach a state in which there's more steady, stable

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<v Speaker 4>growth and the you know, one hundred and fourteen thousand

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<v Speaker 4>a month. You know, there were in the last administration

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<v Speaker 4>seven months of numbers that were less than one hundred thousand,

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<v Speaker 4>and so again we are we're in a transition period.

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<v Speaker 4>We've always said there would be, that was part of

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<v Speaker 4>the plan. This number is cooler than expected, and so

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<v Speaker 4>we have continued work that we need to do, and

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<v Speaker 4>the investments in the presence of Investing in America agenda

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<v Speaker 4>are going to be really key to continue to power

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<v Speaker 4>our strong economy.

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<v Speaker 1>Well, we have to leave it there.

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<v Speaker 2>Really appreciate your time on this busy morning. Our thanks

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<v Speaker 2>of course to Acting Labor Secretary Julie Sue, and of

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<v Speaker 2>course Bloomberg's and Marie Hordern