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This economy 'has room to run,' analyst says of jobs data

  • The U.S. economy saw 222,000 new positions created in June.
  • Compared with unemployment rates in the late '90s, the current economy still has room for growth.
  • Full employment still has not arrived, analysts say.

The U.S. job market roared back to life in June, with a better-than-expected 222,000 new positions created, according to a government report Friday, and two analysts think there is more to come.

"There's room to run in this economy," Aaron Klein, Brookings Institution economic studies fellow, said on CNBC's "Squawk Box."

With the U-3 unemployment rate at 4.4 percent, Klein said, a comparison with the broader measuring U-6 unemployment rate reveals a growth scenario comparable to two decades ago.

"If you look at what happened in the late '90s, you had unemployment below three [percent, for the U-3] and below eight [percent, for the U-6]," Klein said.

The U-3 rate, most commonly referred to as the "unemployment rate," measures those who are unemployed as a percentage of the labor force, while the U-6 is more broad, including additional factors such as those who are working part-time despite seeking full-time work.

Klein believes there are still enough prospective full-time workers for growth to occur. He said those "who are more marginally attached, who want full-time work and can only find part-time" can still find opportunities in the U.S. economy.

Michael Strain, resident scholar at the American Enterprise Institute, also believes the economy is still not at full employment.

"It's hard to argue with wage growth accelerating at this relatively slow rate," Strain said on "Squawk Box."

He agreed with Klein, saying he also "still sees room left to run in this economy." Strain believes the economy must surpass several more indicators to be at full employment.

"In a full employment economy you would expect to see businesses raising wages to retain workers, raising wages to attract workers and wage growth accelerating beyond where we see it," Strain added.