255,000 New Jobs in July, Wages Up 2.6 Percent

The latest jobs numbers are out from the federal government. What do they mean for job seekers and employers? Here’s a quick take from Glassdoor’s Chief Economist Dr. Andrew Chamberlain: Today’s jobs report revealed a U.S. economy that surged ahead in July, creating 255,000 new jobs and an unemployment rate steady at 4.9 percent. This marks the second consecutive strong monthly jobs report, in which the economy has performed much better than economists predicted. Average hourly wages in July were up 2.6 percent from one year ago. That’s still below the long-term average, but well above inflation, delivering real gains to Americans' pay checks. Even the long-declining labor force participation rate rose slightly last month to 62.8 percent—further evidence of a strong and growing job market that’s pulling forward in previously sidelined workers. The industries with notable job gains were professional and business services (+70,000 jobs), leisure and hospitality (+45,000 jobs) and health care (+48,800 jobs). By contrast, mining and logging lost jobs in July (-7,000 jobs) as well as nondurable goods manufacturing (-2,000 jobs). This month’s robust jobs report marks 85 months for the current economic expansion, just seven months short of the remarkable 92-month-long 1980s expansion. While growth has slowed recently, the past seven years have been a remarkable period of stability and growth, reversing many—although not all—of the losses suffered during the Great Recession. With just three more monthly jobs reports before voters head to the polls on November 8, analysts will be closely watching for positive—or negative—news in the jobs picture. To speak with Dr. Andrew Chamberlain about today’s jobs report or to discuss labor market trends, contact pr at Glassdoor dot com. For the latest economics and labor market updates, follow @adchamberlain on Twitter and subscribe to Glassdoor Economic Research.