American unemployment increases
(MENAFN) The United States unemployment rate increased to 4.3percent in July, marking the fourth consecutive month of rising joblessness and reaching the highest level since the early days of the COVID-19 pandemic, according to a report from the Bureau of labor Statistics released on Friday. This uptick is significant, as the previous month's rate stood at 4.1percent.
The labor market added only 114,000 jobs in July, a sharp decline from the 206,000 jobs added in June and below the monthly average of 215,000 over the past year. This figure fell short of economists' forecasts, which had projected an increase of approximately 175,000 jobs.
The number of unemployed individuals across the country rose by 352,000 to a total of 7.2 million. This represents a notable jump from the 5.9 million unemployed a year ago, when the unemployment rate was lower at 3.5percent.
Despite some sectors, such as healthcare, experiencing job gains, overall employment growth continued to slow. In July, only 49.6percent of industries reported an increase in employment, compared to 56.0percent in June. Additionally, average hourly earnings grew by 0.2percent in July, following a 0.3percent increase in June. Over the past year, wages have risen by 3.6percent, reflecting the smallest annual growth rate since May 2021 and placing wage growth just above the 3.0percent -3.5percent range that aligns with the Federal Reserve’s 2percent inflation target.
Analysts suggest that recent natural disasters, such as Hurricane Beryl, which impacted Texas last month, may have disrupted hiring. Julia Pollak, chief economist at ZipRecruiter, indicated that employers might have reduced worker hours or implemented temporary layoffs in response to the storm. However, there remains cautious optimism that a potential rate cut could help stimulate economic recovery and improve employment figures.
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