US Job Growth in July Exceeds Economists’ Expectations

Posted on by Ink Well Mag

Employment increase rate drawing on a chalkboardNon-farm employment in the U.S. increased by 209,000 jobs in July, which was higher than economists’ expectations, according to the Labor Department.

Employment forecast for the month initially involved the addition of 183,000 jobs. The growth took place for the second month in a row, following an increase in June by 231,000 jobs on an adjusted basis. The department’s report originally noted that employment in the country’s increased by 222,000 people in that month.

Industry Hiring

By industry, the manufacturing sector hired 16,000 more people in July, while construction companies added 6,000 jobs. The retail sector also recorded an increase in its payrolls, which would likely boost a need for retail store manager training and development.

The job growth across different industries led the nationwide unemployment rate to fall from 4.4% in June to 4.3% in July, according to the report. This aligned with the forecast growth by economists, who also expected salary growth to reach 0.3% in July. An increase in wages served as an important factor for the country’s economy to remain strong since July, according to Michael Pearce, U.S. economist at Capital Economics.

Higher Wages

In July, average hourly play rose 0.3% to nine cents after a 0.2% growth in the previous month. The increase proved to be biggest of its kind in the last five months. Over the last 12 months from July, salaries rose 2.5% in line with the increase in June.

However, salary growth has begun to drop since it increased 2.8% in February. Still, this isn’t surprising due to the economy almost reaching its peak employment. In the meantime, the higher earnings in July would provide the Federal Reserve with some bright prospects for inflation, which will eventually increase to a target of 2%.

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Conclusion

The increase in employment across the U.S. signals a growing need for more qualified personnel, while also indicating that the economy continues to support the creation of jobs.