US employers add 157,000 jobs, jobless rate slips to 3.9 percent

US employers add 157,000 jobs, jobless rate slips to 3.9 percent

US employers add 157,000 jobs, jobless rate slips to 3.9 percent

The National Federation of Independent Business (NFIB), citing its Monthly Jobs Report for July, said a tight labor market remains the biggest problem small businesses face. But in June, Minnesota's unemployment rate was below the national average at 3.1 percent.

"While this increased employment is undoubtedly good news, job growth exacerbates the monumental manufacturing workforce shortage", she said.

USA employers slowed their hiring in July, adding 157,000 jobs, a solid gain but below the healthy pace they maintained in the first half of this year. The unemployment rate slipped to 3.9 percent, from 4 percent, the Labor Department said Friday.

Wages remain the only red flag in the US labor market.

But paychecks grew only slightly - up 2.7 percent compared to the same time previous year.

A quirk in the calendar may explain why average hourly wages inched up only 7 cents from June to July, explained Josh Wright, chief economist at software firm iCIMS: The Labor Department surveys employers at a different time than when companies pay their workers.

The relative consistency in jobs growth allows economist to turn their attention to wage growth, a key reading for policy makers looking to keep inflation to the Federal Reserve's 2% target.

"It is wonderful that at this point in a recovery you are seeing growth that is on average faster than the previous two years", she reportedly said. Manufacturers, among the most directly affected by the import taxes, added 37,000 jobs, the most in seven months.

White unemployment also dropped in July-to 3.4 percent-a rate unseen since the Yankees and Mets faced off in the World Series finale (October 2000). Transportation, mining and financial services did not hire much in July.

Homebuyers are encountering higher mortgage rates, one reason that the housing market has been faltering lately even as other economic indicators like hiring have remained strong, as evidenced by the upward revisions for May and June. This is 1.9 percentage points below its year-ago rate.

Restaurants, bars and hotels added 40,000 jobs, the most in nine months. Wages have remained in a holding pattern below the highs of the last expansion, despite persistent complaints from employers that they're struggling to find skilled workers and job openings near a record high.

Yet the trade fights didn't appear to impact hiring last month.

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