Monthly update on the state of US jobs market has unexpectedly revealed continuing strengthening trend. The unemployment rate and salary growth coincided with the forecasts, while payrolls beat forecasts.
According to the US Labour Department report, the number of people employed outside the agricultural sector for July increased by 209K compared to the revised figure of 213K in June. The headline reading was above the median estimate of 183K jobs. The unemployment rate fell to 4.3% after small retreat to 4.4% in the previous month.
The average hourly wage in the US increased by 0.3% in accordance with the forecast, after an increase of 0.2% a month earlier.
On an annualised basis for last month, wage growth was 2.5%, which corresponds to the forecast and slightly lower than the previous month’s figure of 2.6%.
The increase in wages is closely monitored by the Federal Reserve as evidence of an increase in demand in the labour market and subsequent inflationary pressures. Economists believe that targeted inflation growth requires an increase in wages at an annual rate of 3.0% or higher.
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