Companies in the United States added 163,000 jobs for the month of July, according to the report published by the Department of Labor. The result is higher than the 100,000 jobs gain, estimated by 89 economists, surveyed by Bloomberg, or the 95,000 additional jobs projected by economists polled by Dow Jones Newswires. However, the unemployment rate increased by .1 percent to 8.3 percent after the labor department adjusted the number of jobs created in June from 80,000 to 64,000.
According to the Department of Labor, professional and business services employment was up by 49,000 jobs; the food, services and drinking industry added 29,000 jobs. The manufacturing industry added 25,000 jobs, temporary help services increased by 14,000; health care employment gained 12,000 and computer systems design added 7,000 jobs. Employment in the fabricated metals industry continues to go upward, with an additional 5,000 jobs.
Payrolls in the utilities sector decline by 8,000, due to a labor management dispute. The motor vehicle and parts industry had fewer layoffs and contributed an additional 13,000 seasonally adjusted jobs.
In addition, the labor department also reported a 2 cents increase in the average hourly earnings of private non-farm payrolls, to $23.52. The average jobs growth for the current year is 151,000 per month.
Brian Jones, senior economist for Societe Generale SA, in New York, commented that the current employment figure released by the Department of Labor is “better but not good enough.” According to him, the economy is stuck in a “channel of lackluster growth.”
In a statement, Republican presidential candidate, Mitt Romney, reiterated that the economic policy of President Barack Obama failed. He said, “President Obama doesn’t have a plan, and believes that the private sector is ‘doing fine.’ Obviously, that is not the case. We’ve now gone 42 consecutive months with the unemployment rate above eight percent. Middle class Americans deserve better, and I believe America can do better.” Romney said his plan is to create 12 million jobs by the end of his first term.
On the other hand, a statement from the White House emphasized the employment report today “provides further evidence that the U.S. economy is continuing to recover from the worst downturn since the Great Depression… President Obama continues to support the elements of the American Jobs Act that have not yet passed, including further investment in infrastructure to rebuild our Nation’s ports, roads, and highways, and assistance to State and local governments to prevent layoffs and rehire hundreds of thousands of teachers and first responders.”
The Federal Reserve is expected to announce a decision during their next meeting on September 12 and 13, regarding if it is necessary to implement a third quantitative easing (QE3). The Fed previously stated that it will closely monitor the economy, and it will provide additional support as needed, to promote a stronger economic recovery and to improve the condition of labor market.
