July Jobs Report Shows 255,000 Jobs Added

The Latest From the BLS Employment Report: 255,000 Jobs Added in July

After picking up last month, private-sector employment showed a second consecutive month of job gains — reinforcing again that the weak May nonfarm-payroll report was just a temporary dip.

The Bureau of Labor Statistics’ jobs report showed that 255,000 private-sector jobs were added in July, far exceeding economists’ expectations for a gain of 179,000 jobs.

Economists’ predictions

Economists predicted 179,000 job additions ahead of this morning’s jobs report and the report exceeded expectations. 255,000 jobs were added this month which is below last month’s booming 287,000 jobs.

While the pickup in private-sector employment in June and July suggest May’s very weak numbers were indeed an outlier, all eyes are still on the Fed. Today’s employment report will be pivotal because it is among the most significant economic data the Federal Reserve reviews before deciding whether to raise interest rates in September.

Employment for May was revised from +11,000 to +24,000, and the change for June was revised from +287,000 to +292,000. With these revisions, employment gains in May and June combined were 18,000 more than previously reported. Over the past 3 months, job gains have averaged 190,000 per month.

Let’s break down the national numbers from this month’s jobs report:

In July, hourly wages rose $0.8 to $25.69 per hour, bringing the year-over-year wage percentage increase to 2.6%. The unemployment rate increased month-over-month and now sits at 4.9%.

• Wages:
  • $25.69 July
  • $25.61 June
    • + 8 cents month-over-month
    • +2.6% year-over-year

• Unemployment:
  • 4.9% July
  • 4.9% June
    • +0% month-over-month
    • -0.4% year-over-year

What does this mean for the accounting and finance industry? Our in-depth analysis is below:

In-Depth Look: Accounting and Finance Jobs

Let’s take a look at how the Accounting and Finance industry is performing. Overall, industry subsectors saw job additions month-over-month. Here are some of the highlights:

• Financial activities:
  • Month-over-month change: +18,000
  •  Year-over-year change: +162,000

• Finance and Insurance:
  • Month-over-month change: +10,000
  • Year-over-year change: +107,000

• Accounting and bookkeeping services:
  • Month-over-month change: +8,100 jobs
  • Year-over-year change: +45,300

The unemployment rate for financial services increased slightly and now sits at 2.4% (+0.2% month-over-month), which is far lower than the national average. This means, for businesses looking to bring on finance professionals, the market remains extremely competitive. To ensure you’re positioning your company as a top employer for job seekers, check out our employer resource center at accountingprincipals.com. And be sure to keep an eye out for our 2017 Salary Guide, hitting the market in September!