Non-Farm Payrolls: Modest Job Increase Misses Expectations, Earnings Experience Uptick

Summary Job creation in the US for July fell behind forecasts with the economy adding 187,000 jobs, underperforming the anticipated 200,000. However, the unemployment rate stayed fairly constant at 3.5%. A silver lining came in the shape of increased Average Hourly Earnings.

Majority of Job Growth in Healthcare, Finance Most new jobs were in the healthcare, social assistance, finance, and wholesale trade sectors. The number of unemployed people, which totals 5.8 million, and the unemployment rate didn't deviate greatly from prior months, oscillating between 3.4% and 3.7% since March 2022.

Average Earnings Rise Signals Positive Trends Average hourly earnings for all employees in private nonfarm payrolls witnessed an increase, growing by 14 cents or 0.4% to $33.74 in July, marking a yearly increase of 4.4%. Private-sector production and nonsupervisory employees saw a similar rise in their average earnings.

Decrease in Average Workweek, Manufacturing Hours Stable The report also noted a marginal decrease in the average workweek for all private nonfarm payroll employees while the average workweek and overtime within the manufacturing domain were consistent.

Revised Figures Indicate Slower Job Growth There were downward revisions in the nonfarm payroll employment numbers for May and June, reducing these two months' employment growth by 49,000, suggesting a slower labor market momentum than earlier implied.

Positivity in US Labor Market Despite Slow Job Addition In summary, even though the job additions were less than expected, the steady unemployment rate and the ascension in hourly earnings propose a resilient U.S. labor market. The adjusted previous employment gains imply a more prudent outlook, keeping market watchers alert for next month's data.