Published: Sun, August 05, 2018
Markets | By Josh Butler

July Jobs Report: 157,000 Is Still a Solid Number

July Jobs Report: 157,000 Is Still a Solid Number

The US economy continued to create jobs in July but at a slower pace, while the tighter labor markets drove the unemployment rate back to near-record lows, the government reported Friday.

That said, the revisions for the two previous months - May and June - looked very good, with a combined gain of 59,000 jobs as compared to previous BLS reports.

United States job growth slowed more than expected in July, as companies appeared to struggle to find qualified workers and the unemployment rate declined, pointing to tightening labour market conditions. The economy grew at 4.1 percent during the second quarter, its fastest place in almost four years. The July gain is the 93rd consecutive month of job growth.

The decline in the jobless rate reflected a 284,000 decline in the number of unemployed people in the workforce, while the number of employed increased by 389,000.

Professionals from both the executive search and talent management sectors weighed in on what they are seeing not only in the USA but other parts of the globe as well. Sales of existing homes have fallen for three straight months and are now below a recent peak reached last November. That was an improvement over a 4-cent gain in June.

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The firm projects the policy would cost the USA economy $457 billion and cause 13,000 deaths by 2050, as air quality suffers. More than a dozen states follow California's standards, amounting to about 40 per cent of the country's new-vehicle market.

The moderation in employment gains and steady wage growth could ease concerns about the economy overheating, and keep the Fed on a gradual path of monetary policy tightening.

Another month of sluggish wage gains could help cool fears the economy could be overheating but are unlikely to dissuade the Federal Reserve from raising interest rates next month for the third time this year.

Mocuta added that the dip in the unemployment rate without any corresponding upward pressure on wages suggested more slack in the labor market than the unemployment rate might otherwise suggest.

Employment in professional and business services increased by 51,000 in July and has risen by 518,000 over the year. Employment rose in transportation equipment (+13,000), machinery (+6,000), and electronic instruments (+2,000).

Manufacturing payrolls rose by 37,000 jobs last month after increasing by 33,000 in June. There were declines in transport, utilities and financial payrolls last month. All told, 8.072 million Americans were working more than one job - above the recessionary peak of 8.071 million hit in August 2008. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy.

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