US Economy Adds Less Jobs than Expected


Non farm payrolls in the United States increased by 157 thousand in July of 2018, following an upwardly revised 248 thousand in June and below market expectations of 190 thousand. Job gains occurred in professional and business services, in manufacturing, and in health care and social assistance.

Employment in professional and business services increased by 51,000 in July and has risen by 518,000 over the year. Over the month, employment edged up in temporary help services (+28,000) and in computer systems design and related services (+8,000).

Manufacturing added 37,000 jobs in July, with most of the gain in the durable goods component. Employment rose in transportation equipment (+13,000), machinery (+6,000), and electronic instruments (+2,000). Over the past 12 months, manufacturing has added 327,000 jobs.

In July, employment in health care and social assistance rose by 34,000. Health care employment continued to trend up over the month (+17,000) and has increased by 286,000 over the year. Hospitals added 7,000 jobs over the month. Within social assistance, individual and family services added 16,000 jobs in July and 77,000 jobs over the year.

Employment in food services and drinking places continued to trend up over the month (+26,000). Over the year, the industry has added 203,000 jobs. 

Construction employment continued to trend up in July (+19,000) and has increased by 308,000 over the year.

In July, employment in retail trade changed little (+7,000). Job gains occurred in general merchandise stores (+14,000), clothing and clothing accessories stores (+10,000), and food and beverage stores (+8,000). These employment gains were offset by a decline of 32,000 in sporting goods, hobby, book, and music stores, reflecting job losses in hobby, toy, and game stores. 

Employment showed little or no change over the month in other major industries, including mining, wholesale trade, transportation and warehousing, information, financial activities, and government.

The average workweek for all employees on private nonfarm payrolls decreased by 0.1 hour to 34.5 hours in July, following an increase of 0.1 hour in June. In manufacturing, both the workweek and overtime were unchanged in July, at 40.9 hours and 3.5 hours, respectively. The average workweek for production and nonsupervisory employees on private nonfarm payrolls remained at 33.8 hours. 

In July, average hourly earnings for all employees on private nonfarm payrolls rose by 7 cents to $27.05. Over the year, average hourly earnings have increased by 71 cents, or 2.7 percent. Average hourly earnings of private-sector production and nonsupervisory employees increased by 3 cents to $22.65 in July. 

The change in total nonfarm payroll employment for May was revised up from +244,000 to +268,000, and the change for June was revised up from +213,000 to +248,000. With these revisions, employment gains in May and June combined were 59,000 more than previously reported. After revisions, job gains have averaged 224,000 per month over the last 3 months.

US Economy Adds Less Jobs than Expected


BLS | Joana Taborda | joana.taborda@tradingeconomics.com
8/3/2018 12:44:12 PM