This is the nice surprise economists and markets no longer dared to hope. The employment figures in the United States have far exceeded expectations in July and the unemployment rate has decreased. While analysts expected 85,000 new jobs last month, the U.S. economy created 117,000, according to the Labor Department.
The private sector alone has created 154,000 net hiring in July. The manufacturing sector created 24,000 jobs, while 11,000 were expected. Public employment has in turn declined for the ninth consecutive month within the scope of the rigor, destroying 37,000 jobs, slightly less than in June, when it had destroyed 39,000. “The July decline was almost entirely due to the partial closure of public services in Minnesota,” the ministry said. The State had placed its officials to short because it had no budget to work earlier this month.
More good news, the very low numbers in May and June were both revised upward, rising from 25,000 to 53,000, and 18,000 to 46,000. These numbers were sufficient to reduce unemployment to 9.1% in July against 9.2% a month earlier. Economists had forecast stagnation.
Nevertheless, the participation rate in the labor market fell to 63.9%, the lowest in sixteen years, according to the website comments ZeroHedge stock. Clearly, more and more Americans retire, discouraged labor market.