We've seen it.

And we finish the shortened holiday week with more positive surprises this morning — in the big June jobs report  (released today, instead of Friday, due to the holiday). 

Remember, last month, we had a huge positive surprise in the May jobs report.   The market was looking for 8 million in new job losses.  Instead, the report showed 2.5 million of job gains.

This morning, the June report showed job gains of 4.8 million, against expectations of 3 million. 

Again, this is all very good news. We're now 80 days into the reopening of the U.S. economy (which started in Georgia), the employment picture is continuing to reflect success in the policy response (keeping both employees and employers whole through the shutdown). 

What about wages?  This is the spot we've been watching for more evidence that inflation is coming.   

Remember, the Fed got excited last year when wage growth ticked up 3.5%, as a signal of economic health.  That was the hottest wage growth in more than a decade. Contrast that with these numbers …  

For June, average hourly earnings were up 5% compared to last year.  That follows an 8% jump in April and +6.7% in May.