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| Treasury Secretary John Snow shares his view on the U.S. economy and latest job numbers. (August 5) |
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NEW YORK (CNN/Money) -
July employment results are evidence of a broad-based job recovery, Treasury Secretary John Snow said Friday, addressing a government report showing that employers added 24,000 more jobs to payrolls in July than Wall Street had forecast.
The closely watched Labor Department report showed that 207,000 jobs were added to payrolls, versus expectations for 183,000 more jobs. with most of the growth fueled by gains in the service sector.
"Teenagers benefited, minorities benefited with employment among blacks and Hispanics rising," Snow told CNN's Daryn Kagan.
Snow was equally pleased with the fact that wages rose 6 cents, about twice the jump forecast by economists.
Over last 12 months wages have risen 2.7 percent, compared to a 2.5 percent rise in consumer prices over the same period.
When asked whether he thinks real wages will be able to keep up with inflation, Snow said, "I think we'll continue to see wages rise, and real wages will continue to rise as well. The key thing here is that the economy continues to expand, as it has well above trend line."
But some analysts and investors were concerned that the wage reading would mean rising labor costs that could force companies to raise prices or accept slimmer profits. With inflation and higher interest rates seemingly on the horizon, stocks fell.
Kagan also asked Snow if he was disappointed that the recent bid for Unocal (down $0.09 to $64.90, Research) by Chinese company CNOOC fell through.
"I don't comment on specific transactions," he said. "But insofar as any transaction poses a security threat to the United States, we have in place a process to make sure that the security interests of the United States are well and fully defended.
He declined to say whether the case-by-case review process would be overhauled, since CNOOC will likely be the first of many foreign firms to vie for a stake in a U.S. company.
"The important thing here is that we build a constructive relationship with China and with our other trading partners," said Snow.
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Today's job strength will likely spur three more interest rate hikes, but will the Fed go too far? Click here for more.
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