United States jobs report: July disappoints with only 157,000 jobs added

  • United States jobs report: July disappoints with only 157,000 jobs added

United States jobs report: July disappoints with only 157,000 jobs added

Nonbank mortgage lenders and brokers employed 345,400 people during the month, according to the Bureau of Labor Statistics. In May, unemployment hit 3.8 per cent, the lowest reading since April 2000.

"House price appreciation has exceeded wage growth for six years, so any signal that wage growth may be closing the gap is good news", said Fleming.

The US economy added fewer jobs than expected in July after a surge of hiring in the previous months.

Another positive sign was the U-6, or underemployment rate, which fell to 7.5 percent, the lowest since 2001, from 7.8 percent.

"Job gains occurred in professional and business services, in manufacturing, and in health care and social assistance" the report says.

Wages remain the only red flag in the USA labor market.

A separate measure, average hourly earnings for production and non-supervisory workers, also increased 2.7 percent from a year earlier, unchanged from the prior month. The pickup has impressed many economists because it's coming late in the economic expansion, which has entered its 10th year and is now the second-longest in USA history.

"It is unbelievable that at this point in a recovery you are seeing growth that is on average faster than the previous two years", she reportedly said.

The decline in the jobless rate reflected a 284,000 decline in the number of unemployed people in the workforce, while the number of employed increased by 389,000. Mining, wholesale trade, transportation and warehousing, information and financial activities remained mostly flat, the BLS said. Despite many company executives complaining that they can not find workers to fill open positions, wage growth remains sluggish.

In terms of the larger context, this morning's data points to 1.5 million jobs created so far in 2018, which is evidence of a healthy job market, and which is an improvement on the totals from the first seven months of 2016 and 2017. Mortgage rates have also increased in the past year, lifting monthly payments and making many homes even less affordable. The unemployment rate for those without a high-school diploma fell to 5.1 percent, the lowest on record.

Employers in the manufacturing sector extended a strong streak of job gains, suggesting that trade disputes hadn't yet weighed on hiring decisions in a major way. Faucher writes that as that happens, job growth will slow down because businesses will find it more hard to recruit new hires.