Jobs Report Beats Expectations, Wage Growth Remains at 2.5% YoY

 

According to the Bureau of Labor Statistics, total nonfarm payroll employment increased by 209,000 in July, and the unemployment rate  was little changed at 4.3 percent.Employment increased in food services and drinking places, professional and business  services, and health care. Economists expected 180,000 jobs to be added in July.

Average hourly earnings YoY remained at 2.5%, still below the 3.8% mark last seen in April 2009. But average hourly earnings rose 0.3% MoM (matching expectations) after 0.2% MoM gain in June.

But hey, average US wage growth is still higher than the global inflation rate (because home prices are not included in inflation calculation).

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Employment in food services and drinking places rose by 53,000 in July. The industry has added 313,000 jobs over the year.

Professional and business services added 49,000 jobs in July, in line with its average
monthly job gain over the prior 12 months.

In July, health care employment increased by 39,000, with job gains occurring in ambulatory  health care services (+30,000) and hospitals (+7,000). Health care has added 327,000 jobs over the past year.

Employment in mining was essentially unchanged in July (+1,000). From a recent low in October 2016 through June, the industry had added an average of 7,000 jobs per month.

Employment in other major industries, including construction, manufacturing, wholesale  trade, retail trade, transportation and warehousing, information, financial activities,  and government, showed little change over the month.

The transformation from a higher-paying manufacuting economy to a lower-paying service economy (like bartenders and wait staff) is nearly complete.

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The US Treasury 10Y yield rose on the “surprise” jobs report.

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