COMP NEWS – The United States saw strong growths in the job market in both June and July, a sign that the economy is continuing to recover from nearly a year and a half of chaotic pandemic acclimations.
U.S. employers hired the most workers in nearly a year in July and continued to raise wages, giving the economy a powerful boost as it started the second half of what many economists believe will be the best year for growth in almost four decades.
The Labor Department’s closely watched employment report on Friday also showed the unemployment rate dropped to a 16-month low of 5.4% and more people waded back into the labor force. The report followed on the heels of news last week that the economy fully recovered in the second quarter the sharp loss in output suffered during the very brief pandemic recession.
In addition to strong data for July, both May and June reports were revised to show an even stronger increase in job creation than previously reported.
Nonfarm payrolls increased by 943,000 jobs last month, the largest gain since August 2020, the survey of establishments showed. Data for May and June were revised to show 119,000 more jobs created than previously reported. Economists polled by Reuters had forecast payrolls would increase by 870,000 jobs.
The economy has created 4.3 million jobs this year, leaving employment 5.7 million jobs below its peak in February 2020.
Wages have continued to rise alongside the employment rate, as workers across numerous industries have bargained for highly raises and better work benefits.
Faced with a record 9.2 million job openings, employers continued to raise wages to attract workers. Average hourly earnings increased 0.4% last month, with sharp gains in the hospitality industry. That followed a similar rise in June and lifted the year-on-year increase in wages to 4.0% from 3.7%.
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