Employers in USA created 255,000 new jobs in July 2016, which far exceed forecasts of the market participants and economists. However, the data are below the upward revised level of June, when they created 292,000 new jobs, according to the Ministry of Labour. This is another proof that companies continue to employ many workers, even when the economy is moving at low speed. The private sector has created 217,000 new jobs, while the public contributed with 38,000.
The second consecutive large monthly increase in employment largely stopped concerns about the health of the economy. Much stronger than expected increase in new jobs and increasing the sympathy that the Federal Reserve may raise interest rates in September. The central bank refrained from such a decision at the previous meeting, after in May reported weak data on the labor market.
The US unemployment rate remain unchanged at level of 4.9%. More than 400,000 Americans have joined the labor offices in search of a new job in July. New listings of jobs remained at a record high value. The broader measure of unemployment marks a slight increase. It comes to the share of Americans who have stopped looking for work and those working part-time for economic reasons. This indicator increased from 9.6% to 9.7%.
The resilience of the US labor market is reflected in the salaries and statistics on weekly hours worked. Hourly wages increased by 0.3% to average 25.69 USD, resulting in wage growth over the past 12 months at a rate of 2.6%. The average workweek increased by 0.1 hours to 34.5 hours.
All major industries had hired more employees in July, with the exception of oil companies because of low commodity prices. The majority of new hires are in professional and business services – 70,000 new jobs during the month. In healthcare industry were employed 43,000 new people in the restaurant – 45,000.
The next three meetings of the US Federal Reserve are September 20-21, November 1-2 and December 26-27. Most analysts believe that if it comes to raising interest it most likely that will happen in September.
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