August 04, 2023
In July, total nonfarm payroll employment in the United States increased by 187,000, according to a report from the U.S. Bureau of Labor Statistics. The unemployment rate remained relatively stable at 3.5 percent. Job gains were observed in various sectors, including health care, social assistance, financial activities, and wholesale trade.
The report is based on two monthly surveys: the household survey, which assesses labor force status and unemployment by demographic characteristics, and the establishment survey, which measures nonfarm employment, hours, and earnings by industry.
Household Survey Data
In July, the unemployment rate in the United States remained unchanged at 3.5 percent, with a total of 5.8 million unemployed individuals, which has been consistent since March 2022. Among the major worker groups, the unemployment rate for Asians declined to 2.3 percent, while rates for adult men (3.3 percent), adult women (3.1 percent), teenagers (11.3 percent), Whites (3.1 percent), Blacks (5.8 percent), and Hispanics (4.4 percent) showed little or no change over the month.
The number of persons on temporary layoff decreased by 175,000 to 667,000 in July, while the number of permanent job losers remained relatively stable at 1.4 million. The number of long-term unemployed individuals (jobless for 27 weeks or more) was little changed at 1.2 million, accounting for 19.9 percent of all unemployed persons.
The labor force participation rate remained constant at 62.6 percent for the fifth consecutive month, and the employment-population ratio also remained relatively unchanged at 60.4 percent in July.
The number of persons employed part-time for economic reasons showed little change at 4.0 million. These individuals preferred full-time employment but were working part-time due to reduced hours or inability to find full-time jobs.
In July, there were 5.2 million persons not in the labor force who desired a job but were not actively looking for work during the preceding four weeks or were unavailable to take a job.
Among those not in the labor force but wanting a job, approximately 1.4 million were marginally attached to the labor force, indicating they were available and had looked for work within the past 12 months but not within the previous four weeks. The number of discouraged workers, a subset of the marginally attached who believed no jobs were available for them, remained relatively stable at 335,000 in July.
Overall, the employment situation in July showed little change in various key indicators, such as unemployment rates, the number of employed individuals, and the labor force participation rate.
Establishment Survey Data
In July, total nonfarm payroll employment in the United States increased by 187,000, which is lower than the average monthly gain of 312,000 over the previous 12 months. Job gains were seen in various sectors, including health care (+63,000), social assistance (+24,000), financial activities (+19,000), wholesale trade (+18,000), and construction (+19,000). Employment in other services (+20,000) and leisure and hospitality (+17,000) showed little change, while professional and business services saw a slight decline (-8,000).
The average hourly earnings for all employees on private nonfarm payrolls rose by 14 cents (0.4 percent) to $33.74, with a 4.4 percent increase over the past 12 months. For private-sector production and nonsupervisory employees, average hourly earnings rose by 13 cents (0.5 percent) to $28.96.
The average workweek for all employees on private nonfarm payrolls edged down by 0.1 hour to 34.3 hours in July, with manufacturing and production workers’ workweeks remaining relatively unchanged.
Revisions to previous months’ data showed that May’s employment increase was revised down from +306,000 to +281,000, and June’s increase was revised down from +209,000 to +185,000. Consequently, the combined employment for May and June is 49,000 lower than initially reported.
Overall, the report indicates moderate job growth in key industries, with some sectors showing stability, while others experience fluctuations. Average earnings have increased, but workweek hours have seen slight adjustments.
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