The class is part of the Shifting Gears training program that works to match job seekers with jobs at auto dealerships around the country.
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The unemployment rate also held steady, after a decrease to 5.3 % in June, the lowest level in more than 7 years.
That job growth was weaker than expected, with analysts’ consensus estimate at 229,000, while the unchanged jobless rate matched expectations. Stock index futures dipped, and U.S. government bond yields were little changed.
“Those who interpret recent Fed communication as indicating a desire to raise rates soon unless there are signs of economic weakness will expect a hike this year, probably in September“, Societe Generale’s Kit Juckes wrote in a new note to clients.
Yes, interest rates have been low for a long time, but there’s no reason for the Fed to be impatient or to raise rates on a whim. The futures market is acting as there will be only one interest rate increase this year; and there will be a maximum of a four quarter-point rate increase at present until the end of next year. The next reports on inflation come out August 19 and September 16 – the day the Fed starts its meeting to decide if it will raise rates.
America’s economy is in good but not great shape this year.
Households and businesses had been braced for an interest rate rise, with Bank of England governor Mark Carney saying last month that an increase was likely “around the turn of this year”.
“If you thought that the Fed was going to go in September, this report would suit that thematic nicely”. Retailers added 35,900 workers in July and restaurants 29,300. Businesses have added jobs for 65 straight months, the longest such streak on records dating to 1939. Finally, management of companies and other enterprises added 14,000 jobs during the month, another driver of office space (a few of these might still want corner offices, too).
Job security also appears to be improving. Enterprise providers – a class that features legal professionals, accountants and engineers – added 40,000 staff, although the variety of momentary staff on short-term contracts fell eight, 900. “It has to do with the decline in the price of oil; it has to do with the decline in the price of raw materials”.
Energy companies responded to oil below $50 a barrel by cutting orders for equipment and pipelines, prompting many manufacturers to slow their hiring. And as an alternative of spending the cash saved due to cheaper fuel, individuals have principally pocketed the money.
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Although there are indications of a rate hike in September, it is far from certain whether the economy is sufficiently robust to deal with it. Fragility is not confined to the U.S. Higher rates will have an impact beyond borders, and focus attention on dollar-denominated debt in EME’s, highly leveraged banks and mounting corporate debt. Over the past 12 months, the number of long-term unemployed is down by 986,000. But many frustrated job seekers have stopped looking for work, perhaps only temporarily. And hiring hasn’t been strong enough to draw millions of Americans who’ve given up on their job searches back into the hunt. The result is that the share of adults working has fallen to 59.3 percent, the lowest level in 31 years.
