The United States witnessed weaker job growth than what was forecasted for the month of July. However, strong wage gains and a decline in the unemployment rate to 3.5% depicted that the labor market is still tight.
According to the latest employment reports from the Labor Department, job growth in May and June was revised downwards, which indicated that there is a slowdown in labor demand in response to the interest which has been increased by the Federal Reserve.
However, the figures in the report depicted that in June, there were 1.6 job opportunities for every person who was unemployed. This suggests that the reduction in job hiring can be a root cause of companies facing challenges in finding available workers.
Labor Department's survey of households Data for July
According to the data shared by the Labor Department's survey of households, last month, nonfarm payrolls witnessed an increase in the number of jobs, standing at 187,000. However, June's data showed a revised job openings figure of 185,000. Meanwhile, a total of 156,000 jobs were added in the month of June. This marked a decline in jobs as earlier there were a total of 209,000 jobs.
Job Growth Since December 2020
The rate of job growth since December 2020 has been at its lowest. It should be noted that a total of 49,000 jobs have been added in May and June together. It was predicted by the Economist that the jobs will see a hike of 200,000 openings.
Back in July, the healthcare industry saw a gain of 63,000 job openings, making it the main job churner. On the other hand, the financial services and construction industries played a big role by contributing 19,000 jobs which as a result showed their strength.
