Payrolls increased by 528,000 in July, much better than expected in a sign of strength for jobs market

Hiring in July was far better than expected, defying signs that the economic recovery is losing steam, the Bureau of Labor Statistics reported Friday.

Nonfarm payrolls rose 528,000 for the month and the unemployment rate was 3.5%, easily topping the Dow Jones estimates of 258,000 and 3.6% respectively.

Wage growth also surged higher, as average hourly earnings jumped 0.5% for the month and 5.2% from the same time a year ago. Those numbers add fuel to an inflation picture that already has consumer prices rising at their fastest rate since the early 1980s. The Dow Jones estimate was for a 0.3% monthly gain and 4.9% annual increase.

Markets initially reacted negatively to the report, with Dow Jones futures down more than 200 points.

Leisure and hospitality led the way in job gains with 96,000, followed by professional and business services with 89,000. Health care added 70,000 and government payrolls grew 57,000. Goods-producing industries also posted solid gains, with construction up 32,000 and manufacturing adding 30,000.

Despite downbeat expectations, the July gains were the best since February and well ahead of the 388,000 average job gain over the past four months. The BLS release noted that total nonfarm payroll employment has increased by 22 million since the April 2020 low when most of the U.S. economy shut down to deal with the Covid pandemic.

The bureau noted that private sector payrolls are now higher than the February 2020 level, just before the pandemic declaration, though government jobs are still lagging.

The unemployment rate ticked down, the result both of strong job creation and a labor force participation rate that declined 0.1 percentage point to 62.1%, its lowest level of the year.

Economists have figured job creation to begin to slow as the Federal Reserve raises interest rates to cool inflation running at its highest level in more than 40 years.

Comments

Post a Comment

Popular posts from this blog

SEC Reopens Comment Period for Proposed Rule Amendments to Modernize Beneficial Ownership Reporting

The Securities and Exchange Commission today reopened the comment period for its proposed amendments to modernize the rules governing beneficial ownership reporting, and the staff of the Commission’s Division of Economic and Risk Analysis released a memorandum that provides supplemental data and analysis related to the proposed amendments’ economic effects. The public comment period will remain open until June 27, 2023, or until 30 days after the date of publication of the reopening release in the Federal Register, whichever is later.   Source: https://companiesbio.com/sec-reopens-comment-period-for-proposed-rule-amendments-to-modernize-beneficial-ownership-reporting-CBIO2320.html?utm_source=blogger_source&utm_medium=blogger_medium&utm_campaign=blogger_cam Category: SEC Press Releases Post by: CompaniesBIO.Com
Read more

Starbucks Boston strike: Mayor joins picket line saying 'Boston stands with you'

Image
The mayor of Boston joined Starbucks workers on a picket line Monday to show her support for unionization efforts at one of the coffee chain' s locations there. Mayor Michelle Wu said she wanted to stand with the workers who are part of a movement to organize unions at Starbucks stores nationwide. “I am here because I want you to know very clearly that the city of Boston stands with you,” Wu said Monday, according to WBZ-TV. “We are going to make sure that Boston continues to lead the way in fighting for safe working conditions and the benefits and wages and respect that you all deserve.” In an open letter July 18 directed at the store manager and the district manager , the striking Boston workers accused Starbucks of slashing work hours and creating a “chaotic and hostile” work environment. They also said a supervisor who helped organize the workers was removed. Wu called the alleged union-busting by Starbucks was “disgraceful.” Starbucks sued over union retaliation claims May 2...
Read more

Bud Light fumbles, but experts say inclusive ads will stay

Image
Bud Light may have fumbled its attempt to broaden its customer base by partnering with a transgender influencer. But experts say inclusive marketing is simply good business — and it’s here to stay. “A few years from now, we will look back on this ‘controversy’ with the same embarrassment that we feel when we look back at ‘controversies’ from the past surrounding things like interracial couples in advertising,” said Sarah Reynolds, the chief marketing officer for the human resources platform HiBob, who identifies as queer. On April 1, transgender influencer Dylan Mulvaney posted a video of herself cracking open a Bud Light on her Instagram page. She showed off a can with her face on it that Bud Light sent her — one of many corporate freebies she gets and shares with her millions of followers. But unlike the dress from Rent the Runway or the trip to Denmark from skincare brand Ole Henriksen, Bud Light’s partnership with Mulvaney angered some customers and hurt sales, while the brand’s ...
Read more