In the US, the US Labor Department reported on Friday that 528,000 jobs were added in July. The world’s largest economy’s labor market grew at a faster pace than in the previous month, surprising.
Economists polled by Bloomberg expect an average of 250,000 new jobs in July due to higher inflation and interest rate hikes by the Federal Reserve. Employers are still eager for new employees because the actual number of new jobs is much higher.
The number of new jobs in May and July was also revised upwards. In May, 398,000 new jobs were added, compared to 398,000 in June.
Much less as in 2020
The U.S. Bureau of Labor Statistics reported that the unemployment rate fell to 3.5 percent from 3.6 percent in July. About 5.7 million people are unemployed. This means unemployment is back down to where it was in February 2020, before the pandemic was felt in the US last month. The number of workers has also returned to pre-corona crisis levels.
Statistics show that there is no broader economic downturn. It was recently reported that US gross domestic product (GDP) contracted for the second quarter in a row. But economists don’t want to call it a recession yet, because that would require a broader economic downturn that would also affect the labor market.