A report from the Bureau of Labour Statistics (BLS) has given rise to a fear of an economic slowdown in the US. As per the report, only 1,14,000 jobs were added in July. The unemployment rate went up to 4.3 per cent in July 2024, compared to 4.1 per cent in June, 2024. The number of unemployed people went up to 3.52 lakhs in July 2024, but most of them attributed their joblessness to temporary layoffs.
The unemployment rate may have gone up because about 4.2 lakh people were added to the labour force, and the labour force participation rate for prime-age workers (aged 25 to 54) went up to 84 per cent.
However, there is sign of inflationary pressures being reduced, as the average earnings per hour went by 0.2 per cent compared to June of 2024, while it went up 3.6 per cent compared to July of 2023. The likelihood of an interest rate cut in September from the Federal Reserve has increased.
About 55,000 jobs were added in the healthcare space, primarily because of improvement in home healthcare services, nursing facilities and residential care availability. About 25,000 were added in construction, with specialty trade contractors generating more jobs. About 14,000 jobs were added in transportation and warehousing, due to increase in couriers.
In the private sector, the job growth has been the slowest since March of last year, with only about 97,000 jobs being added. Government jobs are also witnessing slow growth.
