The numbers The U.S. added a sizzling 528,000 new jobs in July and the unemployment rate fell to pre-pandemic levels in a muscle-flexing display for the economy, but the robust report could add to inflation worries and push interest rates even higher.
The unemployment rate, meanwhile, slipped to 3.5% from 3.6%, the government said Friday, matching the lowest level since the late 1960s. The shockingly strong jobs report could persuade the Fed that even tougher medicine is needed, analysts say. The central bank worries the tight labor market is driving wages sharply higher and making it harder to get inflation under control.
Hourly pay jumped 0.5% in July to $32.27. The increase in pay over the past year was flat at 5.2%, but it’s still one of the fastest increase since the early 1980s. Yet the economy still rests on a solid foundation and that could keep a recession at bay. The U.S. labor market is the biggest strong point.
Except a whopping 309,000 'jobs' came from the birth-death adjustment. So the real number is 219,000.
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