The Clap
Nonfarm payrolls increased and the unemployment rate decreased in July 2022.
The Deets
In July 2022, nonfarm payrolls increased by 528,000, more than double the estimates. In addition to that, the unemployment rate decreased to 3.5%, putting it back to its pre-pandemic level.
Despite the economic weakness, the labor market has shown signs of strength.
Biggest Gainers
Some of the biggest gainers in the industry were:
-Leisure and hospitality with 96,000 job gains
-Professional and business services with 89,000 job gains
-Health care with 70,000 job gains
The July gains in the job market are the highest gains since February and are well above the average job rise in the past 4 months.
This allows the Fed to continue increasing interest rates without a significant rise in unemployment, as they are widely expected to hike interest rates an additional 0.75% in September.
Signal of strength in the job market 💪
