Even though private sector job growth was not as apparent in July as it was in other months, many economists were still encouraged by the BLS’ most recent “The Employment Situation” report.
The report revealed a steady rise in hiring, as the private sector generated 162,000 new jobs in July, the 41st consecutive month of private job creation.
Public sector employment statistics were also released. As a surprise to many economists, government hiring actually augmented for the first time in 2013, rising by 1,000. Local government hiring was especially noticeable, increasing by 6,000, as 10,100 local government educators were added to payrolls.
Within the private sector, hiring was widespread throughout most industries, including manufacturing and information, which had recently recorded net job losses. Each of the following sectors reported a rise in hiring last month.
- Financial Activities: Sector hiring continued to upsurge in July, rising for the second straight month. Approximately 15,000 new jobs were generated last month, as finance and insurance hiring increased by 12,000, whereas 3,000 new real estate jobs were created.
- Information: After the sector reported a net loss of jobs in June, for the second month since April, economists were unsure of what to expect with regards to July’s employment figures. However, the sector recovered last month, as 9,000 new jobs were added to the national economy. This time last year, information industry unemployment was 6.7% but is now down to 5.8%
- Leisure and Hospitality: Although hiring was not as robust in July as it was in June, the sector once again recorded a rise in employment, as 23,000 jobs were generated.
- Professional and Business Services: Unsurprisingly, sector hiring once again increased last month, rising by 36,000, as 18.6 million workers were employed. A majority of the hiring occurred in professional and technical services, which rose by 21,100.
- Retail Trade: Hiring continued to upturn within the retail trade sector, as 46,800 new jobs were created last month, an increase of 9,700, in comparison to June’s data. General merchandise stores reported the largest increase in hiring, adding 9,100 jobs to the economy.
- Temporary Help Services: Temporary help services continue to uptick, with nearly 8,000 jobs being added in July. Over 191,000 temporary jobs have been added since July 2012 and the industry continues to add positions to the economy month over month.
July Jobs Report: Only 162,000 Jobs Added
Source: ABC News
The economy added 162,000 jobs in July, fewer than economists expected, as unemployment fell to 7.4 percent, the Labor Department reported today.
Many economists expected the addition of 175,000 to 185,000 jobs in July and the average workweek to remain unchanged at 34.5 hours. The average workweek fell by 0.1 hour in July to 34.4 hours.
The monthly jobs report is closely watched by investors for signs that the Federal Reserve will soon taper its bond-buying efforts that have boosted the economy, perhaps leading to a new downturn. The Fed has indicated that it will pull back those purchases, but hasn’t said exactly when that will begin. Job additions have been moderate this year, but not at the level that will cause the jobless rate to fall substantially.
Jobs Reports: U.S. Turning Into a Part-time Worker Economy
Source: The New American
When the two-part employment report from the Bureau of Labor Statistics (BLS) was issued on Friday, the news was modestly positive: From its business “establishment” data it noted that employment increased by 162,000, a little less than expected but not far from the average of 175,000 new jobs a month that the economy has been generating for the last three months. The estimates for May and June were revised downward slightly, but July’s numbers were enough to push down the unemployment rate from 7.6 percent to 7.4 percent. The BLS reported also that the number of unemployed persons has dropped by 1.2 million over the last 12 months while the unemployment rate has come down from 8.2 percent to 7.4 percent in that same time period.
There was further good news: Unemployment rates for adult women (at 6.5 percent) and blacks (at 12.6 percent) declined in July while the number of “long-term” unemployed (jobless for 27 weeks or more) has declined by almost one million since July 2012.