US’ July job growth restores nat’l employment to pre-pandemic levels
The job growth in the United States (US) grew unexpectedly in July despite widespread expectations of a slowdown as the Federal Reserve raises interest rates to fight inflation.
According to the Labor Department, employers added 528,000 jobs on a seasonally adjusted basis, doubling what forecasters had projected. The unemployment rate also declined to 3.5%.
Leisure and hospitality businesses led the gains, adding 96,000 jobs last month. Professional and business services followed close behind with 89,000 jobs. At the same time, the construction industry added 32,000 jobs.
The public sector added 57,000 employees, particularly teachers, but remained 2.6% below its pre-pandemic level.
The only broad industry to lose jobs in July was auto manufacturing, which shed about 2,200 as companies continued to struggle to obtain the parts necessary to produce finished vehicles.
A report by the New York Times said that the fear of a recession motivated more people to take jobs while they were still available and stay put in their current ones.
Meanwhile, Simona Mocuta, chief economist at State Street Global Advisors, said that workers had the “luxury of choice” regarding employment.
“If indeed the consumer sentiment surveys are right and the sense is that things are starting to shift, maybe there’s an incentive for you to make your choice and be done with it,” Mocuta added.
