The recently published data from the Bureau of Labor Statistics of the U.S. showed that there has been total nonfarm payroll employment increase by 162,000 in July, and the unemployment rate edged down to 7.4 percent. The national body also reported that employment rose in retail trade, food services and drinking places, financial activities, and wholesale trade.
According to reports this has great implications as it is the first time in five years that firings retreated to the lowest level, paving the way for a pickup in economic growth. The Household Survey Data shows that both the number of unemployed persons (11.5 million) and the unemployment rate (7.4%) retreated in July this year.
Though data on employment in manufacturing sector is encouraging, it remained unchanged in July. Employment in motor vehicles and parts rose by 9,000 in July. The Labor Department also reported positive developments in job openings in the month of June wherein these increased to the highest level in five years.
The report also added weight to the claims that there have been less firings, as it reveals that fewer workers were fired in June than at any time in the previous five months. Though there has been little change in employment in other major industries such as mining and logging, construction, transportation and warehousing, and government, estimates are that unemployment will drop to 7% by the middle of 2014.
Little to No Changes in Hourly Earnings
The report by the Bureau of Labor Statistics of the U.S. also shows that average hourly earnings for all employees on private nonfarm payrolls which received 10-cent increase in June, edged down by 2 cents to $23.98 in July. However, the same report also shows that over the year, average hourly earnings have risen by 44 cents, or 1.9%.
The National Economy Rebounding from the Recession
Basing his opinion on the latest data from the Bureau of Labor Statistics of the U.S., Alan Krueger, chairman of the Council of Economic Advisers says that the numbers are fresh evidence that the economy continues to rebound from the recession. He, however, stressed that the government should initiate policies to generate more jobs and help the middle class.
The latest GDP data showed that the U.S. economy grew at an annualized rate of 1.7 percent in the second quarter in 2013 and the Standard & Poor’s 500 index of large U.S. companies closed at a new high this Thursday.
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