U.S. Economy Gets 209,000 New Jobs For July
Image courtesy of Stuart Miles at FreeDigitalPhotos.net
July saw an additional 209,000 new jobs in the economy – the second straight month of strong gains that highlights the energy felt, as it goes into nine years of growth.
The Labor Department said the unemployment rate dropped to 4.3% from 4.4%, equaling a 16-year-low first seen in May.
However, Americans’ paychecks are still extremely low, remaining weak since the recovery started in June 2009. The average rate per hour rose just 2.5% from 2016. It’s still about 4% under what is usually seen with an extremely low unemployment rate.
The hiring data shows the economy is relatively healthy although there have been some mixed signals recently. Employers look to be more optimistic about their companies and consumer demand. The growth in jobs may lead to more consumer spending, which would help with the economy’s growth.
Citi economist Andrew Hollenhorst said the July report is solid, but that wage growth is still being stubborn.
President Donald Trump tweeted that he’d just started and loved the jobs numbers.
The hiring pace that is seen this year is similar to what it was last year under former president Barack Obama. So far this year, the average of jobs each month is 184,000. In 2016, that number was 187,000 per month. In 2014 and 2015, those monthly job amounts were around 200,000.
Here’s how the hiring broke down:
- Bars and restaurants – 53,100 jobs
- Healthcare and education – 54,000 high and low paying jobs
- Manufacturers – 16,000 jobs
- Professional service (accountants, engineers, etc.) – 49,000 jobs
Retail jobs stayed relatively the same with the brick and mortar stops struggling to stay afloat. Warehousing and transportation also struggled to add jobs.
The healthy job market is also noted in recent moves from corporations. For instance, Amazon recently had its hiring day to fill 50,000 jobs. President Donald Trump remarked that auto manufacturers Mazda and Toyota and Foxconn, a Taiwanese manufacturer, would open plants in the nation.
In other economic news, the signals about the economy are mixed. Americans are purchasing homes at a good pace. However, car sales have dropped. Factory production is fairly modest in its growth, but the growth may be slower for banks, construction companies and retailers. Consumers were also a bit cautious in June and kept more money in their pocket.
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