Economy

United States adds 209000 jobs in July

United States adds 209000 jobs in July”

USA employers added 209,000 jobs in July, a second straight month of robust gains that underscore the economy's vitality as it enters a ninth year of expansion.

The economy extended its winning streak in July, posting its eighth consecutive month of job growth while the unemployment rate dropped to its lowest point since the start of the financial crisis almost nine years ago.

The majority of the job gains came from bars and restaurants (+53,000 jobs), professional and business services (+49,000 jobs), and health care employment (+39,000 jobs). That's about 7 million unemployed Americans, and those numbers have remained largely the same since spring.

"There's still lots of people coming back into the labor force, looking for jobs", said Steve Rick, chief economist at CUNA Mutual, an insurance firm. On its own, it's substantial but not terribly impressive.

A dip in full-time employment slightly pushed Saskatchewan's unemployment rate up last month. Yet transportation and wahrehousing, which has been boosted in recent years by the rapid growth of e-commerce, also barely added jobs.

That may be holding down wages overall, but it's still a good sign that people are able to find work. Recall too that few seemed satisfied with the results in 2016, too.

The US economy saw strong jobs growth in July, helped by a wave of hiring in the hospitality industry.

The more important average hourly earnings rose +0.3% m/m or +2.5% y/y - not stellar, but heading in the Fed's direction. The jobless rate for Hispanics (5.1 percent) ticked up from 4.8 percent.

RBC economist Josh Nye said the average monthly increase of 28,000 jobs in the last twelve months is well above the pace needed to absorb new entrants into the labour force.

Why are wages stagnating at this level of unemployment?

"It does not mean there's no slack in the economy, [or] that we're at full employment". There is no question that if significant tax reform is passed, other jobs reports in the near future will make this one look insignificant. We'd rather have 200K growth than 100K growth, of course, so it's better than we've seen in May and March of this year.

The Wall Street Journal categorized July's wage growth as continuing at an "unspectacular level" and pegged true wage growth, after factoring in inflation, at about 1 percent.



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