The United States added 187,000 employment opportunities during July, somewhat fewer than expected, while the rate of unemployment fell to 3.5%.
The employment gains were comparable to those seen in June. They are likely to offer economists more confidence that the job market will withstand the Federal Reserve’s interest rate hikes to combat inflation without triggering a recession.
According to the Bureau of Labor Statistics, the most job growth was in healthcare, social assistance, financial activities, and wholesale trade. Employment in the film, motion picture and recordings industries declined to 463,000 from 469,200 the previous month.
The WGA strike hampered output, while the SAG-AFTRA strike in July effectively halted it. There was also a modest decrease in broadcast and content provider jobs, which fell to 351,300 versus 351,800 just one month earlier. Seasonal adjustments have been made to the numbers. Publishing jobs declined as well, from 934,900 to 931,200.
Interim Labour Secretary Julie Su was questioned on CNN about her arbitration of the strike at the Port of Angeles in California and why she has not intervened in resolving both the WGA and SAG-AFTRA strikes. Su did not respond, but stated that in an employment crisis, “some workers will strike if they do not get the things they need at the negotiating table.”
It’s all a component of the procedure that the president and I believe in: negotiating collectively, parties getting together to settle difficulties, long-term endurance and resilience in their sectors, including the ability for employees to strike.”
“The employment statistic for July was lower in the middle of the fairway,” said Mark Zandi, the chief economist at Moody’s Analytics, on Twitter/X. It couldn’t have gone any better. Job creation is robust, but slowing, in line with the Federal Reserve’s attempts to contain inflation. Wage growth remains too strong for the Fed’s comfort, but it is slowing.”
The average hourly wage on private, non-farm employment rose by 14. cents, or 0.4 per cent, to $33.74. Over the last year, the median hourly wages have increased by 4.4 percent.
Whenever it comes to managing inflation, Harvard economist Jason Furman said that the data was “mixed”: employment growth has slowed down and the rate of unemployment is “neutral,” but pay growth has sped up.
In subsequent months, the figures are usually corrected. Indeed, the previously strong employment figures for June and May have been revised downward by 49,000 positions. That means the number of jobs created in June is 185,000, compared to 281,000 in May.