WASHINGTON – The July employment report released Friday, which showed nonfarm payrolls rose by a stronger-than-expected 209,000 following a net 2,000 upward revision to May-June payrolls, will be viewed by many as a sign of strength.
The Bureau of Labor Statistics report showed that the unemployment rate slipped to 4.3% from 4.4% in June, as expected. The labor force rose by 349,000, household employment was up 345,000, and unemployed total ticked up by only 4,000.
As a result, the labor participation rate rose by 0.1 to 62.9% after rising to 62.8% in the previous month.
Within payrolls, there were notable gains posted for health care (40,000), professional and business services (50,000), and food services and drinking places (53,000). Retail trade payrolls were still soft, rising only 1,000 in the month, but manufacturing payrolls rose by 16,000.
Average hourly earnings rose 0.3% in July, as expected, after a 0.2% June gain. The 2.5% year/year rate in July the same as in June.
The overall average workweek held steady at 34.5 hours, while manufacturing workweek stayed 40.9 hours.
The Federal Open Market Committee, in its July 26 statement, again pointed out that "job gains have been solid, on average, since the beginning of the year and the unemployment rate has declined." Friday's report seems to in line with that statement.
