July Jobs Growth at 528,000, Unemployment Rate DN to 3.5%


   
    

    

   WASHINGTON, D.C. (DTN) -- Beating expectations for 250,000 new jobs added, 
the U.S. labor market gained 528,000 positions last month, with employment 
continuing to trend higher in leisure and hospitality along with manufacturing 
and transportation sectors, according to the data released this morning by the 
U.S. Bureau of Labor Statistics.

   Both total nonfarm employment and the unemployment rate have returned to 
their February 2020 pre-pandemic levels. The unemployment rate fell back to 
3.5% in the reviewed month.

   Further details of the report showed the number of permanent job losers, at 
1.2 million in July, continued to trend down over the month and is 129,000 
lower than in February 2020. The number of persons on temporary layoff, at 
791,000 in July, changed little from the prior month and has essentially 
returned to its pre-pandemic level. The number of long-term unemployed, those 
jobless for 27 weeks or more, decreased by 269,000 in July to 1.1 million. The 
labor force participation rate, at 62.1%, and the employment-population ratio, 
at 60.0%, were little changed over the month. Both measures remain below their 
February 2020 values, 63.4% and 61.2%, respectively.

   In July, leisure and hospitality added 96,000 jobs, as growth continued in 
food services

   and drinking places, up 74,000. Employment in professional and business 
services continued to grow, with an increase of 89,000 in July. Employment in 
health care rose by 70,000 in July. Manufacturing employment increased by 
30,000 in July. Employment in durable goods industries rose by 21,000, with job 
gains in semiconductors and electronic components up by 4,000.

   Average hourly earnings for all employees on private nonfarm payrolls rose by

   15 cents, or 0.5%, to $32.27. Over the past 12 months, average hourly 
earnings

   have increased by 5.2%, compared with market expectations for a 4.9% gain.

   The change in total nonfarm payroll employment for May was revised up by 
2,000, from

   384,000 and the change for June was revised up by 26,000 to 398,000. With 
these revisions, employment in May and June combined is 28,000 higher than 
previously reported.

   Following the data release, the U.S. dollar index spiked against the basket 
of foreign currencies to trade near 106.660, and the front-month West Texas 
Intermediate futures declined $0.38 to $88.06 bbl.

    

   Liubov Georges, 1.646.359.4088, liubov.georges@dtn.com, http://www.dtn.com.




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