The July jobs report crushed expectations this morning with 255,000 jobs added to the U.S. economy. Wall Street projected an average 180,000 for the month of July, underestimating the total by 75,000 jobs. The report effectively silenced concerns about the poor performance of the labor market back in May and revisions to the June jobs report were up by an additional 5,000 jobs.
Wages rose by 0.3% since June and 2.6% year on year. The wage increase was the highest since April and has been the strongest year over year since the Great Recession. The July jobs report also showed the labor force participation rate rose to 62.8%, a strong economic sign with no change to the 4.9% unemployment rate.
Numbers for the May jobs report were revised from 11,000 to 24,000 non-farm payroll employment. June also saw a positive revision with the additional 5,000 jobs bringing the month’s total to 292,000. Over the past few months, the economy has added on average 190,000 jobs per month.
Employment in the financial services sector grew by 18,000 in July, continuing its steady increase since May. In total, the sector has added 162,000 jobs this year to date. Hiring in the industry remains strong with numerous employers gearing up for Fall recruiting efforts for entry-level talent across the country.
Employers will be monitoring the economy for signs of an increased interest rate from the Fed as their meeting in September draws closer. Although Wall Street previously thought the chances of a rate hike would be nonexistent, traders are now expecting a 50-50 chance for a rate hike by January.
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