On August 7th 2020 the Bureau of Labor Statistics (BLS) reported that July Non-Farm Payroll Employment rose by 1.763 million new jobs and the unemployment rate fell by 0.9% to 10.2% (see full release here).
Both the job gains and the unemployment rate drop were better than forecasted. July represents the third 1 million+ job gain in as many months as the economy continues to recover from the March & April COVID-19 related business shutdowns.
New jobs in the Leisure & Hospitality accounted for about 1/3 of the gains for July and Government and Retail Trade respectively saw the next biggest job gains.
Net revisions to the May & June numbers increased employment in those months by 17,000. Average hourly earnings for all employees increased $0.07 to $29.39. The average workweek for all employees declined by 0.1 hours, however Manufacturing hours increased by 0.7.
Total employment gains from May, June and July were 9.34 million, recouping over 40% of the 22 million job losses reported in March & April. Even with the solid job gains, the slight decline in the average workweek shows that employers continue a balancing act between re-hiring employees and managing hours worked. Overall the numbers looked solid and indicate that the economy continues to heal.
This material is provided by Schmitt Wealth Advisers for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Opinions expressed by Schmitt Wealth Advisers are based on economic or market conditions at the time this material was written. Economies and markets fluctuate. Actual economic or market events may turn out differently than anticipated. Facts presented have been obtained from sources believed to be reliable. Schmitt Wealth Advisers, however, cannot guarantee the accuracy or completeness of such information. Past performance may not be indicative of future results.
