Employment increased by 943,000 last month, beating expectations, including 8,400 jobs in accounting and bookkeeping, while the unemployment rate fell from 5.9 to 5.4%, the U.S. Bureau of Labor Statistics reported Friday.
The number of unemployed people fell by 782,000 to 8.7 million in July. Leisure and hospitality jobs grew 380,000 in July, mainly in food services and drinking places, which added 253,000 jobs. Professional and business services jobs rose by 60,000 in July. Within the industry, employment in the professional and technical services component rose by 43,000 over the month and is 121,000 above its February 2020 level. That category includes accounting and bookkeeping services, management and technical consulting services, and scientific research and development services. Average hourly earnings increased in July by 11 cents to $30.54, following increases in the previous three months.
Despite the job gains, the unemployment rate remains above where it was prior to the COVID-19 pandemic last year, when it was 3.5%. The Biden administration and congressional Democrats are hoping to improve the jobs numbers even more by pushing through with a budget bill paired with a bipartisan infrastructure plan, but the prospects for passage are still uncertain.
“The July jobs report has exceeded expectations by adding nearly a million jobs across sectors while wages rose and unemployment dropped,” said Rep. Richard Neal, D-Massachusetts, chairman of the tax-writing House Ways and Means Committee, in a statement. “This is fantastic news, and a testament to President Biden’s strong leadership. From emergency unemployment insurance to stimulus checks and the expanded Child Tax Credit, Ways and Means Committee policies during this crisis have kept workers afloat and maintained strong demand for goods and services, paving the way for today’s excellent numbers.”
The GOP leader on the committee, Rep. Kevin Brady, R-Texas, credited the end of expanded federal unemployment insurance benefits in some states for the job gains. “Thanks in part to Republican governors removing the Biden work barrier that pays the jobless more to stay home than to work, the July jobs report finally met expectations — although the President’s jobs deficit still remains high at 298,000 and Main Street businesses are still struggling to find workers,” he said in a statement. "The labor force participation rate still hasn’t improved in 2021, which is a red flag for tepid growth ahead. And while we will get the full data in mid-August, it appears rising prices will continue to beat wage growth for a seventh consecutive month, meaning inflation under President Biden will continue to shrink the purchasing power of families.”
Small businesses also gained jobs in July, according to CBIZ, a Top 100 Firm. The
“The July reading reflected a surge in hiring growth and builds on positive trends established earlier in the summer,” said CBIZ executive vice president Philip Noftsinger in a statement. “While optimism persists as more people get vaccinated and feel comfortable returning to work, concerns surrounding emerging virus variants will keep employment numbers in focus, to assess how small businesses and the larger public react.”
