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U.S. employers add 528,000 jobs; unemployment falls to 3.5% – Denver, Colorado

Denver, Colorado 2022-08-05 09:24:02 –

WASHINGTON — Defying fears of a possible recession and rampant inflation, American employers added a staggering 528,000 jobs last month, restoring all the jobs lost in the coronavirus recession. The rate dropped to 3.5%, the lowest since the pandemic began in early 2020.

Job creation in July increased from 398,000 in June, the highest since February.

Burning job numbers from the Labor Department were released on Friday amid growing consensus that the US economy is losing momentum. The US economy contracted in his first two quarters of 2022. This is the informal definition of recession. But most economists believe a strong job market is keeping the economy from slipping into recession.

This surprisingly strong employment number will undoubtedly intensify the debate over whether the US is in recession.

“Recession – what recession?” Fitch Ratings chief economist Brian Coulton wrote after the numbers came out. “The U.S. economy is creating 6 million new jobs a year, which is three times as fast as he normally sees in a good year.”

Economists had expected only 250,000 new jobs this month.

The Labor Department also revised its employment figures for May and June, saying an additional 28,000 jobs were created in those months.Job growth last month was particularly strong in the healthcare industry and hotels and restaurants.

Hourly wages rose 0.5% last month, up 5.2% over the past year, but still not enough to keep up with inflation.

Strong job numbers could push the Federal Reserve (Fed) to keep raising rates to cool the economy and fight resurgent inflation.

Of course, Friday’s numbers have political implications. Voters worry about rising prices and the risk of a recession ahead of November’s midterm elections as President Joe Biden’s Democrats seek to maintain control of Congress. The unexpectedly high hiring numbers will be welcomed by the White House.

U.S. employers add 528,000 jobs; unemployment falls to 3.5% Source link U.S. employers add 528,000 jobs; unemployment falls to 3.5%

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