August 16, 2022

Employment surged in July, as US employers created 528,000 jobs last month, Department of Labor He said Friday. That far exceeded economists’ expectations for a gain of 250,000 new jobs over the period. It was also a jump from the previous month, when companies were added 372,000 job opportunities Despite the highest inflation rate in 40 years.

The unemployment rate fell to 3.5% from 3.6% in June, the lowest level since February 2020, before the outbreak of the COVID-19 pandemic. Prior to the last jobs report, the economy was adding approximately 450 thousand jobs per month.

Employment figures confirm the resilience of the economy after two in a row quarters of declining GDP, which is the hallmark of stagnation. Despite this contracting economic growth, employment remained strong as companies continued to add new jobs and retain their existing workers amid strong consumer demand.

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“With all the worries about a recession, one of the key data points that says the economy is still growing are the jobs numbers,” Brad MacMillan, chief investment officer at Commonwealth Financial Network, noted in a research note ahead of the report’s release. .

Some analysts also point out that job growth alone is an unreliable indicator of deflation, noting that employment often remains strong in the early stages of a recession.

For example, in the three months immediately preceding the recession caused by the housing crash that began in December 2007, the Labor Department’s monthly salary survey showed the economy was gaining nearly 300,000 jobs per month, according to Societe Generale Cross Asset Research.

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