Jobs growth slows down drastically in July
- July's nonfarm payrolls increased by only 73,000 jobs, significantly below expectations.
- The unemployment rate rose to 4.2% as job losses were revised downward for May and June.
- Experts claim the jobs report indicates a quickly deteriorating labor market as some sectors still show growth.
In the United States, the labor market showed signs of trouble as jobs growth in July fell below expectations. The latest report revealed that nonfarm payroll increased by only 73,000 jobs, a figure that was significantly less than the Dow Jones estimate of 100,000. This disappointing number follows an upward revision of only 14,000 jobs added in June, indicating a concerning trend for the job market. More troubling is the fact that previous employment numbers for May and June were also revised downward, showing a loss of 258,000 jobs from initial estimates, with May's jobs added revised from 144,000 to just 19,000. This revision reflects deeper issues within the economy that may have gone unnoticed previously. The unemployment rate rose to 4.2%, which was anticipated, but still raises concerns regarding the overall economic climate. Heather Long, chief economist at Navy Federal Credit Union, indicated this shift as a "gamechanger jobs report," noting the rapid deterioration of the labor market. Contrastingly, a recent report from ADP indicated a private sector increase of 104,000 jobs in July, showcasing a different picture just days before the government's release. This discrepancy highlights the volatility of the current labor situation. Healthcare was one of the stronger sectors, adding 55,000 jobs in July, exceeding the monthly gains of 42,000 seen in the previous year. Most of these jobs growth came from ambulatory care services and hospitals. Additionally, the social assistance sector experienced a boost with 18,000 new jobs, showcasing some positive movement in certain areas of employment despite the overall slowdown. On the other hand, the federal government reported a loss of 12,000 jobs in July, marking an overall decline of 84,000 jobs since January. This loss contributes to a generally deteriorating job market sentiment, where the household survey indicated an increase in discouraged workers, albeit decreased by 212,000 to 425,000 in July. The total number of part-time workers who desired full-time positions remained relatively stable at 4.7 million, reflecting the struggles of many individuals who are unable to find full-time jobs while economic conditions continue to evolve.