Job growth in July slowed down after a strong labor market in the first half of the year.
Job growth in July slowed down after a strong labor market in the first half of the year.
The Summer Jobs Market: A Cooling Trend
The summer jobs market so far is cooling. The US unemployment rate ticked down to 3.5% in July. The US economy added 187,000 nonfarm payrolls in July, below the 200,000 forecasted.
While the US experienced a scorching July with record-high temperatures, the labor market, on the other hand, wasn’t as hot. The latest data from the Bureau of Labor Statistics on nonfarm payrolls, released on Friday, showcased that the US added 187,000 jobs in July, falling short of the forecasted job growth of 200,000. Although this figure was slightly higher than June’s monthly growth of 185,000 (revised down from 209,000), May’s job growth decreased to 281,000 from the previously revised gain of 306,000.
On the bright side, the unemployment rate saw minimal change as anticipated, dropping marginally from 3.6% in June to 3.5% in July. However, experts predicted this rate would remain steady at 3.6%. Despite these figures, various data points before the jobs report indicated that the labor market still remains resilient for workers and job seekers alike.
Nick Bunker, the economic research director for North America at the Indeed Hiring Lab, put it best in his commentary on the Bureau of Labor Statistics’ JOLTS report earlier this week, saying, “The US labor market has come off the boil, but it’s still simmering. Demand for workers – whether new or existing – remains high, and job seekers are still in the driver’s seat.”
Looking at job openings, we can see that they have remained relatively stable, hovering just below 10 million in June, with approximately 9.6 million openings. This figure was in line with the estimate for May but was slightly lower than the 10.3 million recorded back in April. As for the number of hires, June saw just under 6 million, with 5.9 million hires. However, there have been consistently more than 6 million hires each month since early 2021.
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Bunker further emphasized job seeker confidence, stating, “Job openings still outnumber unemployed workers by a ratio of 1.6 to 1, and the quits rate, a key signal of job seeker confidence, remains above its pre-pandemic average.”
In conclusion, the summer jobs market may be experiencing a slight cooling trend, but it is by no means a cause for concern. The labor market remains robust, with high demand for workers and job seekers still enjoying favorable conditions. As the economy continues to recover, it will be interesting to observe how the jobs market evolves in the coming months. Stay tuned for updates on this developing story.
