MNI DATA BRIEF: US July Payrolls, U-Rate Beat Expectations

U.S. job growth was stronger than anticipated in July, with employers adding 943,000 jobs when markets had been expecting a gain of 870,000, the Bureau of Labor Statistics reported Friday. June was revised higher to 938,000. The outcome was in line with the MNI Reality Check which pointed to a modest outpacing of June gains.

The unemployment rate slipped to 5.4% from 5.9% in June, much lower than the 5.7% expected. Participation was up for the first time since April, growing by a tenth to 61.7. Notable job gains came from leisure and hospitality (+380,000), education and health services (+87,000), and professional and business services (+60,000), as highlighted in a recent MNI interview with the ISM. Government payrolls were up 240,000. Gains in other industries were mostly subdued, with manufacturing payrolls up 27,000 after a 39,000 gain in June, and construction up 11,000.

Average hourly earnings were up 0.4% in July, just slightly higher than the 0.3% gain forecast by Bloomberg. From a year earlier, wages were up 4%.