- US Labor Market Adds 209,000 Jobs in July
The US employers added more workers than expected in July, pushing the jobless rate to a 16-year low.
Employers created 209,000 jobs in July, according to Commerce Department. More than the 180,000 jobs estimated by economists. The June data was revised up by additional 2,000.
The unemployment rate improved to 4.3 percent from 4.4 percent recorded in June. Signaling that the labor market remains healthy amid political uncertainty in the US and Russia new sanction.
Average hourly earnings climbed 0.4 percent in July, from 0.2 percent gain in June. Bringing its yearly gain to 2.5 percent. Again, beating economists forecast of 2.4 percent.
Growing consumer confidence and strong household incomes are aiding domestic demand, while the rebound in global growth has helped increase export orders as shown in the Gross Domestic Product report.
Job gains were bolstered by a jump in leisure and hospitality employment. Pushing hiring to five-month highs in manufacturing and education and health sectors.
“The labor market remains very solid and prospects remain very positive,” Ward McCarthy, chief financial economist at Jefferies LLC in New York, wrote in a research note ahead of the release. “The private sector continues to have a very high level of job openings and is approaching full employment across the skill set spectrum.”
Also, the report showed employers are finally raising wages in their bid to keep and attract skilled workers. This should continue to support consumer spending and boost growth above 2 percent in the third quarter.
The Federal Reserve is expected to announce the commencement of its $4.5 trillion balance sheet normalization and increase rates one more time this year.
The US dollar gained against most of its counterpart after the report was released. Reaching a two-day high against the Euro single currency.