Published: Sat, August 05, 2017
Economy | By Melissa Porter

Non-farm payroll: The US created 209000 new jobs in July

Non-farm payroll: The US created 209000 new jobs in July

USA employers hired at a healthy rate in July and the unemployment rate fell to match a 16-year-low, a show of lasting vitality for the labor market. "The downtick in the unemployment rate amid a rise in the labor force participation rate sweetened the report". From June to July, the number of those in the labor force grew from 160,145,000 to 160,494,000, another record high.

The largest number of jobs gains were in the category of "food services and drinking places", which added 53,000 jobs in July.

Over the last three months, job gains have averaged 195,000 per month.

The average workweek for all employees on private non-farm payrolls was unchanged at 34.5 hours.

Average hourly earnings increased by 9 cents to $26.36, after a 5-cent increase in June. Many job stifling regulations continue to fall.

The unemployment rate is also down to 4.3 percent. The Federal Reserve would like to see wage growth kick up to 3.5%.

"This print does evidence how split the U.S. economy is with low unemployment, good job creation, but longer-term inflation woes and mixed growth figures making [Fed chair] Janet Yellen's job particularly hard at present", said Alex Lydall of Foenix Partners.

Wages in July were also a bit better than expected, as month-on-month gains came in in-line with expectations and year-on-year gains topped expectations.

With the labor market continuing to make steady improvements, talk has cropped up about the economy approaching full employment - but that's far from the case for teenagers.

Among the unemployed, the number of long-term unemployed (those jobless for 27 weeks or more) remained steady at 1.8 million in July. Experts say that as unemployment stays low and wage growth remains steady, more Americans should start looking for work again.

That is the country's lowest jobless numbers in almost nine years. "And most economists would like to see wages rising more quickly". The difference between those saying jobs were plentiful versus hard to get widened last month to 16.1 percentage points for the biggest gap since 2001, according to Conference Board data.

Cathy Barrera, the chief economic adviser for the online jobs platform ZipRecruiter based in Santa Monica, Calif., has been concerned about younger workers lagging behind since the recovery from the recession.

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