The U.S. has gained 255,000 new jobs in July, which by all means is a proof that companies are still hiring plenty of workers despite the lower speed of the economy.
The much stronger than expected increase in new jobs has slightly accelerated the odds that the Fed might raise interest rates as early as September. The central bank held off after job creation appeared to slow in May.
Employment gains blew past Wall Street expectations. For June and May were revised up by a combined 18,000. The government commented that 292,000 new jobs have been created in June instead of 287,000. May’s gain was raised to 24,000 from 11,000.
The unemployment rate, however, remained unchanged at 4.9%. More than 400,000 people joined the labor force in search of work in July, a sign they think more jobs are available. Job openings remain near a record high.
Hourly pay increased with 0.3% to $25.69, keeping the 12-month increase in wages at a postrecession high of 2.6%.