US Payrolls Beat Expectations, Wages Rise

But the July jobs report will reinforce beliefs that the hugely disappointing May jobs report was a blip, and that the long-term trend shows the US economy to be on a trajectory of robust growth. Revisions added a total of 18,000 jobs to overall payrolls in the previous two months. The underemployment rate climbed to 9.7% in July from 9.6% as numerous people entering the workforce had to settle for part-time jobs.

The average workweek rose 0.1 hours to 34.5 hours while average hourly earnings inched upwards by 8 cents to $25.69, up 2.6 per cent since the start of the year. Earnings growth has picked up this year from the roughly 2% pace that has prevailed in the recovery but has yet to surge despite the near-normal unemployment rate.

The U.S. economy continued its slow but positive economic growth with the addition of 255,000 new jobs during the month of July, according to a federal report Friday. “To finally get the economy growing for everyone again, we must focus on cutting the tax and regulatory barriers to economic and labor market growth”.

Analysts widely believe that the expression may indicate that conditions are getting more favorable for further interest rate hikes in the future.

Wages also increased in July by.

The payrolls data added to July auto sales in underscoring the economy’s sound fundamentals.

At the same time, initial jobless claims, a reliable gauge of layoffs, remained at prerecession levels, and more consumers surveyed said jobs were plentiful.

In July, health care employment increased by 43,000, with gains in ambulatory health care services (+19,000), hospitals (+17,000), and nursing and residential care facilities (+7,000). Tepid data released last week showing 1.2 per cent second-quarter economic growth offered an opening for Republicans to question Democratic arguments that the recovery was delivering meaningful gains for most Americans.

Fed chairman Janet Yellen earlier said the economy needs to create just under 100,000 jobs a month to keep up with population growth. Public sector employment also increased by 38,000 jobs.

Manufacturing sector employment increased by 9,000 jobs in July after adding 15,000 positions in June. Over the past 3 months, job gains have averaged 190,000 per month. “The Fed is likely to take encouragement from this jobs report as even a 180,000 print will still be consistent with further progress in absorbing labor market slack”, said Millan Mulraine, deputy chief economist at TD Securities in NY. Employment in other higher-paying major industries, to include construction, manufacturing, wholesale trade, retail trade, and information, showed no change over the month.