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- U.S. nonfarm payrolls increase more than forecast in July
U.S. nonfarm payrolls increase more than forecast in July
The U.S. Labor
Department announced on Friday that nonfarm payrolls rose by 1,763,000 in July after
an unrevised 4,800,000 climb in the prior month, reflecting he continued
resumption of economic activity that had been curtailed due to the coronavirus pandemic
and efforts to contain it.
According to
the report, employment rose sharply in leisure and hospitality (+ 592,000 jobs),
government (+301,000), retail trade (+258,000), professional and business
services (+170,000), other services (+149,000), and health care (+126,000).
The
unemployment rate fell to 10.2 percent in July from 11.1 percent in June.
Economists had
forecast the nonfarm payrolls to increase by 1,580,000 and the jobless rate to
drop to 10.5 percent.
The labor force
participation rate decreased by 0.1 percentage point in July to 61.4 percent,
while hourly earnings for private-sector workers rose 0.2 percent m-o-m (or $0.07)
to $29.39, following a revised 1.3 percent m-o-m decrease in June (originally a
decline of 1.2 percent m-o-m). Economists had forecast a 0.5 percent m-o-m drop in
the average hourly earnings. Over the year, average hourly earnings have
increased by 4.8 percent, following a revised 4.9 percent rise in June
(originally an increase of 5.0 percent).
The average
workweek decreased by 0.1 hour to 34.5 hours in July, exceeding economists'
forecast for 34.4 hours.
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