ANDRIY BLOKHIN - STOCK.ADOBE.COM PHOTOThe U.S. Department of Labor reported Aug. 4 that the total nonfarm payroll rose by 187,000 jobs in July, and that the unemployment rate changed little from June at 3.5%. The slowdown in hiring is considered a sign that the economy is gradually cooling, according to published reports.
Hiring in July remained on track as the Federal Reserve continued to look at ways to lessen inflationary pressures, according reporting by The Wall Street Journal.
The Department of Labor report uses statistics from two monthly surveys. The household survey measures labor force status, including unemployment by demographic characteristics. The establishment survey measures nonfarm employment houses and earnings by industry.
In July, employers raised pay at the same rate as June, with average hourly earnings increasing 4.4% in July from a year earlier. This was slower than last year but remained well above the prepandemic pace.
Temporary help services, tech and information companies, and retail establishments cut jobs, while healthcare employers added staff.
According to the WSJ, economists have scaled back their recession expectations after most projected a downturn that, along with job losses, could start in the middle of the year. The Fed raised interest rates to a 22-year high in late July, however, and chair Jerome Powell didn’t rule out another increase. He did say that the labor market came into “better balance” in recent months, with fewer open positions and more Americans working or seeking jobs.
The New York Times reported that while labor force participation remained steady, there are changes in the category of people between 25 and 54. Among these, 89.4% of men are working or looking for work, exceeding prepandemic levels slightly. Among women in this group, 77.5% are working or looking for employment.
