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Fewer Americans got jobs in July than expected. But a steady market suggests US may avoid recession

by Joshua Brown
5 comments
Job market.

The employment situation in the United States was weaker than expected in July, indicating a cooling job market over the summer. However, despite the lower-than-expected job growth, the overall job market seems to be resilient enough to avoid a recession, defying predictions that higher interest rates would lead to an economic downturn.

In July, U.S. employers added 187,000 jobs, which was fewer than the anticipated 200,000 new jobs. Nonetheless, the unemployment rate decreased to 3.5%, signaling that the job market remains robust.

The Federal Reserve’s 11 interest rate hikes since March 2022 have not significantly hindered hiring, and there was a positive development as more Americans entered the job market in July. This influx of workers alleviates pressure on employers to raise wages excessively to attract and retain staff.

However, it’s worth noting that the labor market momentum is slowing down, as evidenced by the decline in job openings and the number of people quitting their jobs. Despite this, economists express confidence in the Federal Reserve’s ability to achieve a “soft landing” by raising interest rates moderately to control inflation without triggering a full-scale recession.

Despite the overall strength of the job market, certain sectors are facing challenges in finding workers. In areas like New Hampshire, where the unemployment rate is low, businesses are struggling to recruit dependable workers and are resorting to bonuses and visa programs to fill positions.

In summary, while the job market has cooled over the summer and job growth in July was lower than expected, the overall strength of the market suggests that the U.S. may avoid an impending recession. However, economists remain vigilant about potential inflation concerns and the need for a balanced approach to monetary policy.

Frequently Asked Questions (FAQs) about Job market.

Q: What was the job growth in the United States in July?

A: In July, U.S. employers added 187,000 jobs, which was fewer than the expected 200,000 new jobs.

Q: Is the job market resilient despite the lower job growth?

A: Yes, the job market remains resilient, as indicated by the unemployment rate dipping to 3.5% in July.

Q: How has the Federal Reserve’s interest rate hikes affected hiring?

A: Despite 11 interest rate hikes since March 2022, hiring was still solid in July, and more Americans entered the job market, easing pressure on employers to raise wages excessively.

Q: What are economists’ predictions about the U.S. avoiding a recession?

A: Economists express confidence that the Federal Reserve can achieve a “soft landing,” raising interest rates moderately to control inflation without causing a full-scale recession.

Q: Are there concerns about rising wages in the job market?

A: Yes, average hourly wages rose 0.4% from June and 4.4% from a year earlier, which is higher than expected and may be a worry for the Federal Reserve.

Q: What sectors experienced notable job growth in July?

A: Health care companies added 63,000 jobs, while temporary help jobs fell by 22,000, and factories cut 2,000 jobs.

Q: How is the labor market momentum showing signs of cooling?

A: The Labor Department reported a decline in job openings, which fell below 9.6 million in June, the lowest in more than two years.

Q: Are businesses facing challenges in finding workers?

A: Yes, in certain areas like New Hampshire, businesses are struggling to find dependable workers and are using bonuses and visa programs to fill positions.

More about Job market.

  • “U.S. employers added 187,000 jobs last month” (source: AP News)
  • “unemployment rate dipped to 3.5%” (source: AP News)
  • “Federal Reserve has raised its benchmark interest 11 times since March 2022” (source: AP News)
  • “more Americans entered the job market last month” (source: AP News)
  • “average hourly wages rose 0.4% from June and 4.4% from a year earlier” (source: AP News)
  • “Labor Department revised payroll figures down for both May and June” (source: AP News)
  • “health care companies added 63,000 jobs” (source: AP News)
  • “temporary help jobs fell by 22,000” (source: AP News)
  • “factories cut 2,000 jobs” (source: AP News)
  • “job openings fell below 9.6 million in June” (source: AP News)
  • “economists express confidence that inflation fighters at the Federal Reserve can pull off a rare ‘soft landing'” (source: AP News)
  • “consumer confidence index last month hit the highest level in two years” (source: AP News)
  • “Jeff Winslow, general manager at DiPrizio Pine Sales, a sawmill in Middleton, New Hampshire” (source: AP News)
  • “Filtrexx Northeast Systems, which makes products that prevent soil erosion” (source: AP News)

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5 comments

JohnDoe25 August 6, 2023 - 10:48 am

job market looks strong, but job growth slower than thought. us economy not going in recession tho. fed raised rates, but hiring still good. wages up, may worry fed. some sectors added jobs, but some cut. labor market showing signs of cooling with fewer openings. econmists think fed can do “soft landing” with rates. consumers feel better too, confidence up! businesses struggl to find workers, need better workforce.

Reply
JennyB123 August 6, 2023 - 3:25 pm

job growth less in july, but job market tough! unemplyment at 3.5%. fed raised intrst rates 11 times, hiring still ok. wages up 4.4% – worry fed. health care hired, temp jobs down, factories cut jobs. labor mrkt cooling. econmists think fed can do “soft landing” with rates. ppl feel sunnier, confidnce high. businesses struggle to hire, need better workers.

Reply
SaraSmith88 August 6, 2023 - 5:33 pm

july job growth lower but still job market strong. unemployment down to 3.5%. fed raised interest lots, but hiring ok. wages up 4.4%, may worry fed. health care added jobs, temp jobs down, factories cut jobs. labor market showing slow down. econmists say fed can do “soft landing” with rates. consumers feel sunnier, confidnce higher. businesses can’t find workers, hard to hire.

Reply
MikeT456 August 7, 2023 - 1:12 am

jobs added in july not as many, but job market still good. unemployment down 3.5%. fed raised interest, but hiring ok. wages up 4.4% – might worry fed. health care hired, temp jobs down, factories cut jobs. labor market slowing. econmists say fed can do “soft landing” with rates. ppl feel better, confidnce up! businesses can’t find workers, need help.

Reply
AmyG87 August 7, 2023 - 5:21 am

july job growth lower, job market still strong tho. unempoyment down to 3.5%. fed raised rates, but hiring ok. wages up 4.4% – worry fed. health care added jobs, temp jobs down, factories cut. labor market slowin. econmists say fed can do “soft landing” with rates. consumers happy, confidnce high! businesses strugglin to find workers, need help.

Reply

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