According to the Labor Department’s Friday report, July’s job growth was less than anticipated and suggests that the US economy is expanding more slowly.
For the month, nonfarm payrolls increased by 187,000, a little shy of the 200,000 Dow Jones forecast. Even though the headline number was below expectations, the actual result was a slight improvement over the downwardly revised 185,000 for June.
When compared to the consensus prediction that the unemployment rate will remain unchanged at 3.6%, the actual figure was 3.5%. The rate is merely a little higher than when compared to late 1969.
An important indicator for the Federal Reserve in its fight against inflation, average hourly wages increased by 0.4% for the month, or 4.4% annually. Both figures exceeded the corresponding forecasts of 0.3% and 4.2%.
The labor force participation rate, another crucial statistic, remained at 62.6% for a fifth consecutive month. A more complete measure of unemployment, which takes into account discouraged workers and people who hold part-time jobs for financial reasons, dropped to 6.7%, a 0.2-point decrease from June. The unemployment rate calculation method, the household survey, revealed a more significant gain of 268,000.
By industry, the healthcare sector added the most jobs—63,000—during the month. Social assistance (24,000), financial activities (19%), and wholesale commerce (18,000) were among the other industries that contributed. The remaining 20,000 came from the other services category, which also included 11,000 from private and laundry services.
After average gains of 67,000 per month in the first three months of 2023, the leisure and hospitality sector, which has been a leading one throughout the majority of the recovery in the Covid epidemic era, added just 17,000 jobs, consistent with a decreasing trend.
Lower revisions were made to the totals for earlier months; June’s tally was reduced by 24,000 to 185,000, while May’s total was reduced by 25,000 to 281,000.