Winning streaks are important. In baseball, hitters get hot. In basketball, a 3-point shooter who can't miss has hot hands. Sports fans are always rooting for a string of wins. So are investors and the Federal Reserve when it comes to jobs.
But America's job creation trend has been cooling off slightly.
While individual monthly employment data gets much headline attention, the march of other statistics is more revealing of the nation's underlying economic strengths and weaknesses. "Obviously, we have to look at the pace of job creation," said Federal Reserve Chairwoman Janet Yellen a week ago. She was responding to a question about how to judge when the central bank has fulfilled its mandate of maximum employment.
One way to see the pace of job creation is by looking at a three-month running average of new jobs. A year ago, the economy was chugging along, cre
ating an average of more than 250,000 new jobs per month. This year, that has slowed to barely 200,000 new jobs per month.
The deceleration comes as the Federal Reserve is openly debating when to raise interest rates for the first time in almost seven years. Employment is arguably the most important factor in its decision-making.
Similar to early 2014, the American economy shrank in the first three months of this year. While job growth slowed, it barreled through.
A year ago, companies picked up hiring in the spring and summer. With the release of the June employment report on Thursday, investors will see if the job market can hit another hot streak this summer.
Tom Hudson, financial journalist, hosts "The Sunshine Economy" on WLRN-FM in Miami, where he is the vice president of news. Follow him on Twitter @HudsonsView.