Following a strong June, the U.S. economy to add a total of 255,000 to the total nonfarm payroll positions in July, according to the latest monthly employment report from the Bureau of Labor Statistics released this morning. July's seasonally adjusted figure-- down12.7% month-over-month, and down 7.9% percent year-over-year--stll comes in ahead of the consensus forecasts by the Wall Street and once again proves the steady recovery in the U.S. job market.
This comes as a relief to the hand wringing from the recently-released lower-than-expected GDP growth. The 1% growth rate for the U.S. GDP in the first half of this year only was at half of what was expected by economists, and therefore struck many as a warning sign of yet another recession. But Moody's Analytics chief economist Mark Zandi said in a different conference call that the slowing GDP is a result of many temporary forces and is expected to rise for the next half of 2016.
The national unemployment rate stayed firm at 4.9% in July, while the labor-force participation rate saw a moderate progress to 62.8 percent. Average hourly wages for total private workers grew by 8 cents to $25.69 in July.
Construction employment rebounded with a 14,000 added in July, the first gain after staying steady in June. The jittery construction labor market lately has made no significant impact on builders' confidence, which holds firm in July as BUILDER previously reported. National Association of Home Builders Chairman Ed Brady said in a previous statement that it's a sign of the "ongoing gradual housing recovery that is underway."
Lawrence Yun, chief economist at the National Association of Realtors, was buoyed by the report. “From a year ago, the total now stands at 2.4 million new hires. In recent prior years, wages had been stuck, but the latest trend is showing an upturn. In July, wages grew at the fastest rate since 2009, rising 2.6%. Moreover, hours worked rose a bit including overtime hours, signaling more hirings and wage growth in the upcoming months. Jobs in the construction industry rose at 3.3%, essentially double the total job growth rate. Jobs at furniture stores and garden supply shops are also rising at above the national average. Rising home sales clearly helping in this regard. ... Given that home builders are experiencing labor shortage, a transfer of work into construction could help more home building – something that is critically needed to relieve the ongoing housing shortage. All-in-all, a good job report.”