The U.S. added 157,000 jobs in July, and the unemployment rate
fell below the 4 percent mark for just the third time in nearly 18 years.
unemployment rate dropped to 3.9 percent from 4 percent in June, matching the
April rate of 3.9 percent, the U.S. Department of Labor reported. The jobless
rate edged close to the 3.8 percent low seen in May, which matched a low in
April 2000, a year where the unemployment rate was under 4 percent for several
months. Unemployment hasn’t been lower than 3.8 percent since 1969.
bump in wages in July was also good news for the housing and mortgage markets
that have seen homes sales drop off a bit this summer due to fast rising home
prices and a lack of entry-level listings.
hourly wages rose by 7 cents to $27.05, and wages have risen 71 cents, or by
2.7 percent over the year.
were generally pleased with the latest jobs report, although the headline job
creation number was lower than expected. The May and June numbers were revised
up by a total of 59,000 jobs, and job creation has averaged 224,000 additions
each month over the past three months.
economy is rolling along and jobs are being created,” said Lawrence Yun, chief
economist for the National Association of Realtors. “Though the latest monthly
net new job gains of 157,000 is a bit light compared to recent past months, the
one-year total is still very solid at 2.4 million.”
also noted that wages in the construction industry have risen at a faster pace
of 3.5 percent annually, which appears to be attracting more workers to the
financial incentive is no doubt helping to draw more workers into construction
as evidenced by 4.4 percent job growth rate in construction compared to 1.6
percent growth rate in all jobs,” Yun said. “With housing supply to steadily
rise, the broad housing market will be in a healthier balanced state in the
construction industry gained 19,000 jobs in July, and has added 308,000 over
sectors adding jobs in July included professional and business services (up
51,000); manufacturing (37,000); health care and social assistance
(34,000); and food services and drinking places (26,000).
ongoing struggles of the traditional retail sector, including the recent Toys
‘R’ Us liquidation, showed up in the July employment numbers, however. There
was a decline of 32,000 jobs in sporting goods, hobby, book, and music stores,
reflecting job losses in those stores.
Mae Chief Economist Doug Duncan said the report should keep the Federal Reserve
on course to raise rates this fall. He noted, among other signs of a strong
labor market, that the unemployment rate for people with less than a high
school degree has fallen to a record low since tracking began in 1992.
job gain was weighed down by a massive drop in employment in sporting goods and
hobby stores, which is likely a one-off event related to the bankruptcy of a
toy company, and thus we don’t see any warning signals flashing for the labor
market,” Duncan said. He disagreed, though, that the uptick in construction
employment was sufficient.
construction employment climbed higher at a pace unlikely to keep up with
building demand, which suggests no meaningful relief from the housing supply
crunch in the second half of the year,” Duncan said.
Article author : Victor Whitman
Article source name : https://www.scotsmanguide.com/Ne
Source URL : https://www.scotsmanguide.com/News/2018/08/U-S--unemployment-hovers-near-18-year-low/?utm_source=TopNews081018&utm_medium=email&utm_campaign=TopNews?utm_source=TopNews081018&utm_medium=email&utm_campaign=TopNews&utm_source=SG_01&utm_medium=email&utm_