With an unemployment rate of 3.5%, the US economy created 187,000 new jobs in July, which was somewhat below projections.
The rate of employment growth was almost the same as in June. The report may boost confidence among financial experts that the labor market will withstand the Federal Reserve's higher interest rates to combat inflation without collapsing.
Employment in Entertainment Sector
According to the data from the US Bureau of Labor Statistics (BLS), the fastest-growing occupations were in the healthcare sector, followed by social assistance, the financial sector, and wholesale commerce. Employment in the film and music sectors dropped from 469,200 to 463,000 in the most recent month.
The Writers Guild of America (WGA) strike hampered production, while the Screen Actors Guild - American Federation of Television and Radio Artists (SAG-AFTRA) walkout in July essentially halted it.
In addition, Deadline said there was a decrease in the number of people employed in the broadcasting and content provision industries, from 351,800 to 351,300. Seasonal adjustments have been made to the data. Publishing employment also decreased, from 934,900 to 931,200.
Acting Labor Secretary Julie Su was questioned on why she has not intervened in the ongoing strikes by the WGA and SAG-AFTRA.
According to Deadline, Su did not directly respond but explained the situation: "Some workers are going to strike if they are not getting what they need at the bargaining table. It's all part of the process that the president believes in, and I do - collective bargaining, parties coming together to resolve issues, building strength and resilience in their industries for the long term, and some of that will include the ability of workers to strike."
Moody's Analytics chief economist Mark Zandi posted on X, "The jobs report for July was down the middle of the fairway. Couldn't have been much better. Job growth is strong, but moderate, consistent with the Federal Reserve's efforts to quell inflation. Wage growth is still a bit hot for the Fed's liking, but it continues to cool off."
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Greater Salary Growth
A rise of 14 cents, or 0.4%, brought the average hourly wage for private, nonfarm payrolls up to $33.74. Hourly wages, on average, have increased by 4.4% in the last year.
Professor of economics at Harvard University Jason Furman called the report "mixed" in terms of containing inflation, noting that although job growth is slowing and the unemployment rate is "neutral," pay growth has increased.
Future months often see upward adjustments to the numbers. Revisions of 49,000 jobs were made to the previously reported strong employment results for June and May. The employment growth rate dropped to 185,000 in June from 281,000 in May.
