US job market surges in July

US job market surges in July

US President Biden touts new data on Jobs. US job market surges in July!

The US economy has slowed down for two subsequent quarters. What is interesting is that the job market seems to be in a recovery mode. According to a new report, United states has added 500,000 jobs in the month of July, which has now taken the job market to pre-pandemic levels. The unemployment rate in the United States dipped to about 3.5% in the month of July and overall the data suggests that the job market is far stronger than expected by the Economist.

The growth in the job sectors is essentially driven by leisure, hospitality, healthcare and other sub-sectors. The barton also touted the new data and has argued for the US economy’s stability.

Here is what President Joe Biden said,

“Today we received another outstanding jobs report. 528,000 jobs were added just last month to this country’s employment. We have now nearly doubled almost 10 million jobs, that’s the fastest job growth in history. We also match the lowest unemployment rate in America in the last 50 years, 3.5%! Today there are more people working in America, then before the pandemic began. In fact, there are more people working in America at any point in American history. What we’re also seeing something that just a few years ago, many experts said was literally impossible. The revitalization of American manufacturing.”

The data has now triggered fears of inflationary pressures and analysts now predict that the news is likely to spur the Federal Reserve’s determination to hike interest rates further. The markets slummed following the data report on rate hike fears with the Wall Street closing way lower. And standard and poor 500 shared over six points ending at about 4,145.17 points, while NASDAQ shared about 60 points closing in rated about 12657.

Pretty mild reaction to today’s job report which I think was a lot higher than most people were expecting. But I think the reality is that’s a lagging indicator that reflected a period before a lot of layoff announcements had been made. And I think when we see the next month’s data, we’re going to see the drop in employment or maybe not a negative number but much lower. That will be more reflective of what’s happening in the real world. Meanwhile, the employment data had its effects on the other sectors as well. The US dollar rallied reaching its biggest daily percentage gain since the middle of June against the end. If ever gold prices extended their losses and dipped more than 1%.