For over 4 years, the U.S. economy has been creating new private sector jobs at the rate of just over 2% per year, and there is no sign yet of any change to that trend. It's been fairly solid and steady growth, with a few minor blips here and there. It's nothing to get excited about, but it's very reassuring that conditions in the economy continue to improve. This is not an economy that is precarious or tenuous. It's not at risk of sinking or imploding, and it's not by any stretch a bubble. It's very likely to continue growing at the current pace even after the Fed starts raising interest rates early next year.
The U.S. economy could be doing a whole lot better, of course. But it is fighting significant headwinds in the form of high marginal tax rates, a punitively high corporate tax rate, heavy regulatory burdens, an anti-business climate in Washington, and geopolitical instability. Monetary policy has served mainly to supply safe, risk-free assets to a world that is still fighting the last war (the Great Recession and the near-death experience of a coming very close to a global financial collapse). The need for accommodative monetary policy is disappearing, however, as confidence slowly returns.
The private sector has created over 9 million new jobs since the end of 2009. Jobs are now clearly into new high ground. The recovery has been slow, but it's still in the early stages. There are few if any capacity constraints to further growth. Lots of room on the upside.
The rate of private sector jobs creation has been about 200K per month since early 2010, or just over 2% per year. July private sector jobs rose by 198K, dead-square on their 4-year average.
Total jobs growth is likely to be a bit better than private sector jobs growth going forward, since the public sector is once again in an expansion phase after four years of shrinkage. But this is not necessarily a good thing. The public sector has been a burden for the private sector, since public sector workers are much less productive than their private sector counterparts. Overall, it's steady as she goes.