WASHINGTON — The job market in the United States has cooled over the summer. The figures for July give a new sign of that affirmation.
Employers in the United States added 187,000 jobs last month, much less than expected. However, the unemployment rate dropped to 3.5%, supported by the more than 9 million jobs available throughout the country for almost three years. The data even reached 11.9 million vacant positions.
Hiring rose by 185,000 in June, a figure that the Labor Department corrected from the initially reported 209,000. Economists had anticipated 200,000 hirings in July.
Still, the hiring last month adds to the list of job openings in the nation. The Federal Reserve has increased interest rates 11 times since March 2022.
The US Central Bank will see more Americans joining the working market last month, easing pressure on employers to raise wages and to attract and retain their staff.
Unemployment fell as 152,000 Americans entered the job market. The number of unemployed decreased by 116,000.
Despite the increase in workers in the market, the average salary increased by 0.4% compared to June and by 4.4% compared to the same month of the previous year, according to the figures that the government is offering and that may worry more the fed.
The Labor Department corrected downward the payroll figures for May and June, reducing the number of jobs created in those months by 49,000. In July, companies in the health sector added 63,000 jobs.
The US labor market is the only economic index that has challenged the actions of the Federal Reserve. Some economists express their confidence that the Fed has not deepened the negative economic conditions in the country as expected.
The Conference Board, a private research group, said its consumer confidence index has gained ground, but remains very low.
There is other evidence that the labor market is losing momentum.
The Labor Department reported Aug. 2 that available jobs fell to less than 9.6 million in June, the lowest number in more than two years.
That monthly record of job vacancies has never been above 8 million before 2021. The number of people who have quit their jobs – an indication that they are confident they will find something better elsewhere – also fell in June, but is still down. above pre-pandemic levels.
FOUNTAIN: With information from AFP
