The US labor market continued to occupy land in July, albeit at a slower pace, indicating that the economic rebound still continued to rise despite an increase in coronovirus infection.
Salaries increased by 1.76 million in July, beating estimates for gains of 1.48 million, and 4.79 million advances in June, Friday data from the Department of Labor. The unemployment rate fell more than expected to 10.2%, while a broad gauge of unemployment also fell to 16.5%.
The data point for a labor market, which is at the turning point, when the economy returns from the depths of a virus-induced recession. At the same time, the jobless rate remains high and the route ahead will be uneven with high frequency indicator turns As businesses more negatively end use of their federal debt and unemployment benefit pressure reduced consumer spending.
Read more: Bloomberg’s TOPLive blog on jobs report
Michelle Meyer, head of US Economics at Bank of America Corporation, said, “There is naturally some change in the pace of job creation, as you go through an initial boom in activity when you resume.” To recover the labor market completely, but progress is being made. ”
American equities have declined amid growing speculation that lawmakers may not be able to agree on a new round of economic stimulus. The dollar strengthened and yields rose slightly on the 10-year Treasury note.
President Donald Trump with MPs and administration officials struggling to reach agreement on a new relief package On Thursday, he said he was likely to sign an order on Friday or over the weekend, extending extended unemployment benefits and providing a payroll tax holiday.
White House economic adviser Larry Kudlow said on Bloomberg TV after the report, “Negotiations are currently in a deadlock.” Despite this, Trump plans to use executive orders to get “through some priorities”, including “payroll tax cuts and eviction bans”. Kudlow called the economic recovery a “V-shape”.
Employment is nearly 13 million below pre-epidemic levels in February, when the recession officially began, July data show.
The Labor Department said that adjusted for the employment of unemployed Americans – an issue that has suffered from varying degrees of data since March – the unemployment rate would be about 1 percent higher.
What do economists at Bloomberg say
“After an unprecedented swing from severe decline to rapid rebound, the economy is entering the dynamics of a more traditional recession. Long-term elevated unemployment and submissive participation in the labor market will weigh heavily on income growth, personal spending, and top-line growth. ”
– Yelena Shultayeva, Andrew Hasby and Eliza Winger
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The growth in employment again impacted the leisure and hospitality industry, where restaurants saw a one million jump on payroll. Retail trade employment also increased, although at a slower pace, with more than 250,000 jobs added. Health care and social support payrolls rebounded as doctors’ offices remained open and as day care demand grew.
At the same time, construction employment rose to just 26,000 in July, below forecasts and back from a drop in payroll among producers of fabricated metals, machinery and computer and electronic products. Auto makerAdded over 39,000 workers.
The report also showed a jump of 241,000 in local government employment reflecting seasonal adjustments. Federal government employment increased by 27,000 in July, boosted by the recruitment of temporary workers for the census.
Layoffs have continued for the past several weeks, particularly in industries affected by the epidemic. American Airlines Group Inc. advised that 25,000 jobs were in danger when the aid ceased and United Airlines Holdings Inc. said it would pursue one-third of its pilots. Victoria’s Secret owner L Brands Inc. said it would Sorting 15% of its workforce.
On the other hand, Amazon Inc., Alphabet Inc., Ford Motor Co. And DR Horton Inc., among companies that are involved in plans to create or increase headcount.
Labor Department jobs showed black American unemployment fell by 14.6% compared to 9.2% for Whits and Hispanic unemployment. The jobless rate for women, which bear the most responsibility for childcare and homecare duties, fell to 10.5% and for men it fell to 9.4%.
The data showed little change in the number of Americans who permanently lost their jobs in July. During the financial crisis the number remains much below this.
– assisted by Chris Middleton, Edith Moy and Sophie Caronello