With Surge in July, U.S. Recovers the Jobs Lost in the Pandemic

Despite expectations that the Federal Reserve will raise interest rates to fight inflation, the U.S. job growth accelerated in July across nearly all industries.

The Labor Department said on Friday that employers created 528,000 jobs on a seasonal basis. In February 2020, the unemployment rate was 3.5 percent, which was the lowest in 50 years.

In a year when red-hot inflation and fears of recession have been recurring economic themes, the Biden administration is pleased with the job growth. President Biden said that the jobs report shows that we are making progress for working families.

The labor market's continued strength is all the more striking as gross domestic product, adjusted for inflation, has declined for two consecutive quarters and as consumer sentiment about the economy has fallen steeply.

According to a University of Michigan economist, employment growth is an economic North Star. These data are more reliable than G.D.P when it comes to taking the pulse of the economy.

The report could make the Fed more determined to cool the economy. Wage growth increased to 5.2 percent over the past year, indicating that labor costs could add fuel to the price increase.

policymakers have signaled that more increases are in store after the Fed raised interest rates four times Companies are likely to cut payrolls later in the year as they try to match expected lower demand.

James Knightley is the chief international economist at ING. It could be December or the early part of next year.

The nation lost 22 million jobs in the first few months of the Pandemic. Employment is still lower than it would have been if Covid-19 hadn't happened.

Even as consumers shift their spending from goods to out-of-the-house experiences, the July gains were the strongest in five months and were spread across nearly all corners of the economy.

Bars and restaurants added 74,000 jobs. The sector is 7.1 percent below where it was in February 2020 after recovering from the Pandemic.

There were 89,000 jobs added across management occupations, architecture and engineering services, and research and development. Before the last recession, the sector was over a million jobs above where it was before.

Ferguson has been in that boom. She is the sales and marketing director of a technology services provider in Dallas and has struggled for months to find qualified workers.

Ms. Ferguson said that people used to be able to start at $22 an hour. Most of the people applying for jobs haven't finished school.

Accountants, manufacturers and local chambers of commerce are anxious about the economy. She is trying to hold on to her workers while she invests in automation software.

Ms. Ferguson said that this is not the time to get rid of employees and not do marketing.

In July, the auto manufacturing industry lost about 2,200 jobs as companies continued to struggle to get the parts they need to make cars. The public sector added 57,000 employees but still has a prepandemic level.

If some employers decide to lay off workers, they are likely to be absorbed by companies that couldn't find enough workers. If orders slow down more broadly, enough had been built up to boost payrolls into autumn.

Residential construction jobs are expected to decline with mortgage rates rising and new housing starts and permits falling. The construction industry added jobs.

Amy Glaser is senior vice president for business operations at the global staffing firm Adecco. It will take several months to catch up because of that.

Fear of a downturn may be motivating more people to stay put rather than leave. The number of people without a job for 27 weeks or more fell to 1.1 million in July, while the share of people quitting their jobs has not changed. Availability of workers has improved in recent months according to small businesses.

Simona Mocuta, chief economist at State Street Global Advisors, said that workers have had the choice of multiple offers to choose from. If the consumer sentiment surveys are correct and the sense is that things are starting to shift, there may be an incentive for you to make your choice.

There are a lot of people who are in the labor force.

High demand has done little to increase the number of available workers, despite the report's broad strength.

The labor force participation rate fell marginally to 62.1 percent. Policymakers watch that figure closely because a larger pool of available workers could contain labor costs.

Even as bank accounts have been emptied and the stock market has fallen, people over 55 have not gone looking for jobs in large numbers.

Evidence suggests that the increasing prevalence of long Covid may be to blame. John Leer, chief economist at the polling and analytics firm Morning Consult, said surveys showed that infections were still a concern, but also that there wasn't enough awareness of the opportunities available.

Mr. Leer thinks it's a reflection of information. If you are sitting on the sidelines, it is hard to know if your skills could be used in transportation or warehousing.

The rate of job openings in Maine is above the national average, but Jessica Buckley, who lives in Maine, hasn't taken the plunge yet.

She decided to stay at home with her children when she stopped working in agricultural marketing. When she started looking for a job again, she found nothing comparable in the region, and she has been reluctant to switch fields while the family can make ends meet.

She is open to becoming a paralegal, or even working in restaurants, where wages have risen 18.6 percent, not adjusted for inflation, since the beginning of the swine flu epidemic.

Ms. Buckley said that she would go back to being a wait staff if she ever started working as a bartender. The table has everything on it.

Ben reported.