If they are saving out of precaution, for example, if they are worried about their future income. In this case, people are less likely to spend their increased savings, but to hold into them. Research suggests that in these circumstance only 5% of the extra savings may be spent on consumption in the economy.
With respect to the labor market, more than 850,000 jobs were added, on net, to nonfarm payrolls over the first six months of the year, though these gains came at a slower pace in the second quarter than in the first. Last month the unemployment rate stood at 4.6 percent.