While the numbers reflect the confidence of investors and employers, American jobs growth is still behind last year’s rate. In total, the economy has added 1.3 million jobs since December of past year. USA growth has been weak this year, averaging 1% in the first half.
Advertisement
Some economists raised the possibility that the job gains will embolden the Federal Reserve to resume raising rates later this year, though perhaps not before December.
Monetary policy makers earlier this year veered off a course of planned, successive rate hikes as signs grew that the American economy might not be on sure footing. The two months have established the fundamental strength of the U.S. economy, and the chances of a rate hike this year have increased.
The resilience of the labor market was reflected in wages and how many hours people work each week.
Shortly after the numbers were released, Republican presidential candidate Donald Trump’s campaign released a statement blasting the current economic growth trajectory, but not referencing July’s numbers themselves.
The unemployment rate, meanwhile, was unchanged 4.9%. Highlighting job market strength, average hourly earnings increased a healthy eight cents and workers put in more hours.
The payrolls data added to July auto sales in underscoring the economy’s sound fundamentals. Economists had expected a growth of about 180,000 jobs in July and for the unemployment rate to reach 4.8%.
But many others blame a low jobless rate that historically has translated into fewer available workers but stronger wage gains in the latter stages of an economic recovery. But the July jobs report will reinforce beliefs that the hugely disappointing May jobs report was a blip, and that the long-term trend shows the us economy to be on a trajectory of robust growth. Construction payrolls rose 14,000 following three consecutive months of declines.
America’s mining sector lost 6,000 jobs in July.
Hospitality and food, leisure, professional business services, financial activities and healthcare were the strongest sectors.
Before today’s employment report, job growth in 2016 has averaged 172,000 per month, compared with 229,000 in 2015.
Temporary-help jobs, a harbinger of future hiring, increased 17,000. Hiring rebounded in June with a net gain of 287,000, but recent economic figures and a faltering European economy had suggested another slowdown.
Advertisement
Even optimistic analysts agreed, though, that the labor department’s broadest measure of unemployment shows that some workers continue to struggle. More than 400,000 people joined the labor force in search of work in July, a sign they think more jobs are available.
