Over the past two and a half years, the US economy has created more than 200,000 jobs on average in each month. This dynamic has been broken. The labor market added 187,000 jobs in July, a figure that shows a slowdown but that continues to be a demonstration of solidity.
This amount is also below the forecasts, which maintained the level of 200,000. However, it represents an improvement compared to June, since the revision carried out now leaves the increase for that month at 185,000 (24,000 less), while in May, once the data was revised, there were 281,000 hirings, 25,000 less than those estimated. they said in their day.
Despite showing a healthy level, the additions in June and July are a clear reflection of the restrictive monetary policy of the Federal Reserve (Fed), which has been increasing interest rates for a year and a half to contain inflation and weaken economic momentum. especially in the labor market.
The unemployment rate in the US falls from 3.6% to 3.5%, one of the historical lows, practically identical to that of 1969, the time before all the great crises after World War II. There is more supply than demand, experts stress. For each person looking for work, there are 1.6% of open jobs.
Average salaries, a key element for the Fed when it comes to regulating the price of money, grew by 0.4%, which places the annual rate at 4.4%. The two percentages were higher than predicted, 0.3% and 4.2%, respectively.
In another relevant number, the labor force remained at 62.6% for the fifth consecutive month. The broader employment rate, which includes discouraged workers and those in part-time jobs, fell 0.2% from June to 6.7%.
The financial markets, once they heard the news, remained flat, with no notable movements in light of these numbers.
The healthcare, social care and financial services industries led the increases in July, with numbers ranging from 63,000 to 19,000 new jobs. Leisure and hospitality, motors until now of the labor market after the impact of the pandemic, added 17,000, a clear slowdown compared to the 67,000 monthly average in the first quarter of 2023.
