August 5, 2019
Even with a slowing economy, U.S. employers added 164,000 jobs in July as the unemployment rate held steady at 3.7%, according to the Labor Department. The jobless rate is still at a nearly 50-year low.
Through the first seven months of 2019, employers have added an average of 165,000 jobs per month. That number is less than last year’s average monthly pace of 223,000. Job growth for May and June was revised down by 41,000.
On the inflation side, wages have been growing slowly, which has stifled inflation. Average hourly earning rose 8 cents, to $27.98 in July, up from 3.2% a year ago and a slight jump from June.
“The July jobs report was on par with expectations, adding 164,000 jobs, including 148,000 in the private sector, to hit a new record total for the U.S. labor force,” said Matt Dolly, research director at Transwestern.
“The average monthly gains for 2019 is at its lowest level since 2010. However, despite the increase in the labor participation rate, the availability of labor remains constrained due to the growth that has taken place during this 10-year economic expansion, the longest on record. Also, the slow and steady growth bodes well to avoid overheating, and gives reasons for the Fed to lower rates further this year. Overall, as job growth remains steady and wages continue to rise, it is anticipated that the U.S. economy will perform well for the foreseeable future.”
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