943,000 jobs were added to the US economy in July
The US unemployment rate fell to 5.4% on Friday as the US labor market saw an additional 943,000 jobs in July.
The news is a signal that the shortage of workers is beginning to be easier, hampering the US recovery.
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The non-farm salary data revealed by the Bureau of Labor Statistics was far exceeding economists’ expectations for 870,000 new jobs.
Policymakers are keeping an eye on the numbers as they could impact future policies aimed at helping the US continue recovery from the Covid-19 pandemic.
Robert Alster, CIO of the Close Brothers Asset Management Comments, investment management company: “While salary continues to draw a positive picture of the US job market, the Fed pays attention to detail before making a decision. ”
“Companies are still struggling to hire and the benefits of employment are limited by either workers, the wrong workers in the wrong place, or the wrong jobs with the wrong salary. Teenage workers is currently more than usual in the labor market, and Powell’s dashboard reveals an uneven recovery in terms of diversity and inclusion.”
Some companies are increasing wages, while others offer other incentives.
The numbers could hide something a little more troubling for the US economy, suggests Hinesh Patel, portfolio manager for quilters investors.
“The recent surge in Delta cases has not been addressed by these figures, and such employment figures remain a bit volatile and difficult to interpret, which for some time is a bit high point for US employment. Furthermore, the Delta variant shows how vulnerable the global economy is to emerge new strains of the virus and create new waves.”
“But for now, the Fed hopes that everyone will return to work and office in September as the delta surge eases and confidence resumes and vaccination rates improve. The Fed has The biggest problem is the fact that participation rates remain at a low of nearly 40 years and they appear to think they will affect this. This pandemic changes the way the economy works, and new automation is being used. It led the waves, which means that they struggle to take control over the long term and that financial support needs to step up despite the continued recovery.” Patel added.
