Strong Job Creation in June-July

The Bureau of Labor Statistics (BLS) employment report for July was released on Friday with a gain in jobs that exceeded analysts’ expectations. The May result was revised down by 7,000 and June was revised up by 9,000 positions. Using a three-month moving average (3MMA), the July result was 195,000 jobs, which was pulled down by poor growth in May of just 145,000 positions.

Economy.com summarized as follows: “July was another good month for the U.S. labor market. Nonfarm employment rose by 209,000 between June and July, better than our above-consensus forecast for a 185,000 increase. Private employment rose 205,000 and gains were broad-based. The workweek was unchanged, while average hourly earnings for all private workers rose 0.3 percent following a 0.2 percent increase in June. At first glance, there were not a ton of surprises in the household survey, as the unemployment rate slipped from 4.4 percent to 4.3 percent. The implications for monetary policy are straightforward—the labor market supports the Fed’s balance sheet plan and keeps another rate hike alive this year, most likely in December.”