“The July jobs report was almost uniformly positive with strong job gains resulting in a large drop in the unemployment rate,” said NAFCU Chief Economist and Vice President of Research Curt Long.
WASHINGTON–The U.S. economy roared into midsummer with strong gains in hiring, according to the latest jobs report, even as questions remain over the ability to maintain the momentum as the Delta variant of the coronavirus continues to spread.
According to numbers released last week by the Labor Department, employers added 943,000 jobs in July. But the number comes with a caveat in that the data was collected in the first half of the month, before variant-related cases exploded in many parts of the United States.
“The July jobs report was almost uniformly positive with strong job gains resulting in a large drop in the unemployment rate,” said NAFCU Chief Economist and Vice President of Research Curt Long. “The retail sector did not enjoy a share in the gains, losing over 5,000 jobs during the month, but otherwise gains were broad. This report will add to mounting pressure on the Fed to taper asset purchases.”
The numbers marked the best monthly performance since August 2020, and underscored how far the recovery has come, at least until the Delta variant appeared on the scene, noted the New York Times.
Unemployment Rate Falls
The unemployment rate fell to 5.4%, compared with 5.9% in June. Before the report, the consensus of economists polled by Bloomberg forecast a gain of 858,000 jobs, with the unemployment rate dipping to 5.7%.
“This is a great report, very solid in terms of job growth, wage growth and the decline in the unemployment rate,” Gus Faucher, chief economist at PNC Financial Services in Pittsburgh, told the Times. “I don’t see the Delta variant derailing the recovery.”
The Times noted the education arena, often a laggard in July as schools close and teachers go off the payroll, was a leader last month. Instead of letting teachers go as they have in the past, schools kept more workers on the payroll, creating a larger seasonal adjustment upward in the number of teaching jobs, the report noted.
Strong Hiring by Government
Local government added 221,000 education jobs, after a jump in June, and 40,000 jobs were added in private education. Leisure and hospitality businesses, which were hit hard by lockdowns last year, recovered further, adding 380,000 jobs. That included 253,000 in food and drinking establishments, along with hiring gains in lodging and in arts, entertainment and recreation, according to the Labor Department.
The data show manufacturing and construction showed more modest increases, hampered by higher goods prices and a shortage of components like semiconductors. Employment in professional and business services jumped by 60,000, a sign that the white-collar sector is on the upswing.
According to numbers released last week by the Labor Department, employers added 943,000 jobs in July. But the number comes with a caveat in that the data was collected in the first half of the month, before variant-related cases exploded in many parts of the United States.
“The July jobs report was almost uniformly positive with strong job gains resulting in a large drop in the unemployment rate,” said NAFCU Chief Economist and Vice President of Research Curt Long. “The retail sector did not enjoy a share in the gains, losing over 5,000 jobs during the month, but otherwise gains were broad. This report will add to mounting pressure on the Fed to taper asset purchases.”
The numbers marked the best monthly performance since August 2020, and underscored how far the recovery has come, at least until the Delta variant appeared on the scene, noted the New York Times.
Unemployment Rate Falls
The unemployment rate fell to 5.4%, compared with 5.9% in June. Before the report, the consensus of economists polled by Bloomberg forecast a gain of 858,000 jobs, with the unemployment rate dipping to 5.7%.
“This is a great report, very solid in terms of job growth, wage growth and the decline in the unemployment rate,” Gus Faucher, chief economist at PNC Financial Services in Pittsburgh, told the Times. “I don’t see the Delta variant derailing the recovery.”
The Times noted the education arena, often a laggard in July as schools close and teachers go off the payroll, was a leader last month. Instead of letting teachers go as they have in the past, schools kept more workers on the payroll, creating a larger seasonal adjustment upward in the number of teaching jobs, the report noted.
Strong Hiring by Government
Local government added 221,000 education jobs, after a jump in June, and 40,000 jobs were added in private education. Leisure and hospitality businesses, which were hit hard by lockdowns last year, recovered further, adding 380,000 jobs. That included 253,000 in food and drinking establishments, along with hiring gains in lodging and in arts, entertainment and recreation, according to the Labor Department.
The data show manufacturing and construction showed more modest increases, hampered by higher goods prices and a shortage of components like semiconductors. Employment in professional and business services jumped by 60,000, a sign that the white-collar sector is on the upswing.
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