Larry Kudlow: July jobs report signals robust economy

White House economic adviser Larry Kudlow touted the July jobs numbers as a “solid report” signaled by an uptick for all wages and salaries accounting for 5.5 percent year-over-year gains.

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The average hourly earnings rose by 8 cents to $27.98 and notable gains occurred in year-over-year average hourly earnings with an increase of 3.2 percent. The wage increases were expected to hold steady at 3.1 percent.

“This is I think an astonishing positive, diversified, rebuilding, growth, prosperity cycle that is touching all Americans,” Kudlow told FOX Business’ Stuart Varney on Friday.

The U.S. economy added 164,000 jobs in July, meeting Wall Street's expectations, according to the Labor Department statistics. Unemployment remains steady at a 3.7 percent rate, holding slightly above a 50-year low.

Kudlow said the biggest beneficiaries and the fastest-growing group in the increase in labor compensation is the bottom 10 percent. He added that the savings rate jumping slightly above 8 percent is an indication that consumer spending is very strong.

“This is not a debt driving expansion at all,” Kudlow said. “When you have an 8.1 percent savings rate that shows you the fundamental strength of more people working successfully and earning more.”