Jordan Grice – U.S

U.S. Unemployment Hits Pre-Pandemic Levels as Job Growth Surges in July

By Jordan Grice

And just like that, U.S. unemployment has recovered from its pandemic-induced doldrums. However, the labor market is still tight despite seeing significant job growth in July, according to a recent report from the U.S. Bureau of Labor Statistics (BLS).

Based on BLS data, employers added 528,000 jobs in July—up from 372,000 in June. This mid-summer performance helped bring the national unemployment rate down to 3.5%, marking a total return to its February 2020 pre-pandemic levels.

The labor force participation rate, at 62.1%, and the employment-population ratio, at 60%, were little changed.

According to CNBC reports, the employment gains indicate a strong labor market despite signs of economic weakness in the face of elevated inflation and the federal response to reel it in. Key findings: • The U.S. added 528,000 jobs in

July. • The average hourly earnings for all employees on private nonfarm payrolls rose by 15 cents (0.5%) to $32.27. • There were 5.67 million unemployed people in July 2022— down from 8.67 million in July 2021. • Employment in leisure and hospitality grew by 96,000 jobs, with restaurants adding 74,000 and accommodation covering the remaining spread. • Employment in professional and business services added 89,000 jobs. • Manufacturing added 30,000 jobs in July, with employment in durable goods industries—including products used in homebuilding—up by 21,000. • Employment in construction grew by 32,000 positions, as specialty trade contractors added 22,000 jobs. • Jobs in construction were up 82,000 over February 2020.

The takeaway: “The 20 million jobs lost during the early months of the COVID-19 lockdown have been fully recovered,” said Lawrence Yun, chief economist for the National Association of REALTORS® . “More Americans are working today than at any time in history. The unemployment rate is 3.5%, matching a 50year low. Companies have increased wages by 6.2%, though that figure is unable to keep up with 9% inflation. ‘Help Wanted’ signs abound.”

“Job growth in July remained strong, and with upward revisions to May and June, job growth has averaged 437,000 per month over the last three months,” said Mike Fratantoni, SVP and chief economist at the Mortgage Bankers Association. “Despite the negative reading on second quarter GDP, this is not a picture of an economy in recession. And even though initial claims for unemployment insurance have increased modestly in recent weeks, these data show that the pace of hiring, spurred by more than 10 million job openings, continues to exceed any increase in layoffs.” RE

Jordan Grice is an RISMedia senior editor. Email your real estate news ideas to him at jgrice@rismedia.com.