The Bureau of Labor Statistics reported the economy added 209,000 jobs in July, somewhat more than what the consensus estimated. The revisions to the prior two months data were largely offsetting, so bringing the three month average to 195,000. The strong job growth brought the unemployment rate back down to the 4.3 percent rate reached in May, the low for the recovery. There was also a slight uptick in the employment-to-population ratio to 60.2 percent, a new high for the recovery.
Some of the other data in the report were more mixed. While the single month wage growth was strong at 9 cents per hour, this is a very erratic figure. The rate over the last twelve months was 2.5 percent.
Furthermore, the average wage for the last three months compared with the prior three months grew at just a 2.3 percent annual rate. While this is a very modest deceleration, clearly it is not possible to make the case that wage growth is accelerating in spite of the relatively low unemployment rate.
The percentage of unemployment due to voluntary quits fell back to 10.9 percent. By comparison, this figure was over 12.0 percent in 2006 and 2007 and peaked at more than 15.0 percent in 2000. The low share of quits suggests that workers are not confident in their labor market prospects.
It is also worth noting that the data continue to refuse to comply with the skills shortage story. The employment rate for college grads actually fell 0.2 percentage points in July and is unchanged over the last year. By contrast, the employment rate for those with just a high school degree is up by 0.8 percentage points over the last year.
Defying Trump’s right-wing agenda from Day One
Inauguration Day is coming up soon, and at Truthout, we plan to defy Trump’s right-wing agenda from Day One.
Looking to the first year of Trump’s presidency, we know that the most vulnerable among us will be harmed. Militarized policing in U.S. cities and at the borders will intensify. The climate crisis will deteriorate further. The erosion of free speech has already begun, and we anticipate more attacks on journalism.
It will be a terrifying four years to produce social justice-driven journalism. But we’re not falling to despair, because we know there are reasons to believe in our collective power.
The stories we publish at Truthout are part of the antidote to creeping authoritarianism. And this year, we promise we will kick into an even higher gear to give you truthful news that cuts against the disinformation, vitriol, hate and violence. We promise to publish analyses that will serve the needs of the movements we all rely on to survive the next four years, and even build for the future. We promise to be responsive, to recognize you as members of our community with a vital stake and voice in this work.
Please show your support for Truthout with a tax-deductible donation (either once today or on a monthly basis).