The Dow Jones Industrial Average rose 1 percent; the Nasdaq composite index rose 1.1 percent, and the Standard & Poor’s 500 index rose 0.8 percent.
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Business services – which includes a wide range of jobs such as computer designers and engineers – led the pack with 70,000 news jobs. “With upward revisions to prior months’ job gains, annual wage growth tying a seven-year best, an improved participation rate, and a longer workweek, the report gives support to those on the Fed hoping to increase rates this year, especially if the numbers are supported in future releases”.
But June was strong, with almost 300,000 new jobs added: that number has been revised upward, from 287,000 to 292,000. More important to numerous record 151.5 million Americans now holding jobs is the rise in wages, an 8-cent-an-hour increase, or 0.3 percent, resulting in a 2.6 percent year-over-year improvement. Economic growth is expected to accelerate to at least a 2.5 percent annualized rate in the third quarter.
USA employers added 255,000 jobs in July, a sign of confidence in the economy that economists say will likely ease concerns over evidence of weak growth.
Associated Builders and Contractors Chief Economist Anirban Basu said the data “was most welcome”.
Speculation that the Fed would raise the rate again September proved wrong in the face of slow growth in China and Europe, as well as Britain’s “Brexit” vote to leave the European Union. The financial activities sector rose by 18,000 in July, and has risen by 162,000 over the year. Some economists pointed to odd weather patterns, a listless global economy and market turbulence early this year. Participation numbers have been hovering near the lowest levels in nearly 40 years, partly because the Baby Boom generation is retiring but also because some younger workers have given up on finding a job.
Yet after the latest tally, monthly job growth has averaged a solid 190,000 the past three months and 186,000 for the year, down moderately from the 229,000 pace in 2015. Companies that don’t invest don’t get more productive.
Nonfarm payrolls rose by a seasonally adjusted 255,000 last month, the Labor Department said Friday.
After months of conflicting signals and economic uncertainty, it became clear Friday that the American jobs machine has moved back into high gear. Payroll gains are also forecast for the construction sector after three consecutive months of weakness.
Manufacturing sector employment increased by 9,000 jobs in July after adding 15,000 positions in June.
Among other positives in the report, the average work week picked up to 34.5 hours from 34.4 hours and 17,000 temporary workers were added.
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In addition to the new jobs, there are also indications that Americans are earning slightly more. The job-market data keeps saying otherwise. Through July, 78 percent of the 1.3 million jobs added have gone to women.
