WASHINGTON–The Labor Department’s July jobs report showed that the U.S. economy lost 23,000 last month, which is counter to the forecast of many economists, who had expected to see a gain of more than 80,000 jobs.
Moreover, revisions to May and June payrolls numbers showed that the economy added 103,000 fewer jobs in those two months.
In its analysis, the Wall Street Journal also noted that more Americans stepped back from the labor market entirely, according to the Labor Department’s separate monthly survey of households. As a result, the unemployment rate eased to 4.1%, from 4.2% in June, even though fewer people were working.
September Rate Hike Less Likely
“The July jobs report disappointed as job creation slipped below zero for the first time since February,” Curt Long, chief economist with America’s Credit Unions, said in a statement. “The July data may have suffered from the impact of the end of the World Cup, increased immigration enforcement, and quirky seasonal factors, but the weakness extended beyond job growth to labor force participation and hourly earnings. A September rate hike from the Federal Reserve is still in play but would likely require a very hot inflation print later this month. Against this backdrop of rising prices and a tepid labor market, credit unions will continue to provide needed financial relief for Main Street households.”
Data Points
The new data reveal:
- Government job losses pulled July’s numbers into negative territory. But private-sector hiring was also week, with employers adding just 30,000 jobs.
- With the boom in data centers the likely driver, the construction sector added 22,000 jobs last month. Manufacturing gained 5,000job.
- Leisure and hospitality employers cut 40,000 workers, while retailers shed more than 19,000 employees.
- Private-sector education and healthcare jobs grew by 25,000, a relatively weak showing for what has been a big source of new jobs over the past year, the Wall Street Journal noted.
