There were a lot fewer hirings in July
of ConsumerAffairs
This summer has not been very good for job seekers. The latest evidence is the Labor Departments July employment report.
The economy added just 114,000 jobs during the month while the unemployment rate rose to 4.3%. Its the latest economic data this week suggesting that the economy is slowing.
And though not part of the July report, Intel is adding to the unemployment line. In reporting disappointing second quarter results, the chip maker said it plans to layoff 15% of its workforce.
Your chances of landing a job last month were best if you were in the construction industry. With growing spending on infrastructure, the economy added 25,000 new construction jobs.
With summer air travel near record highs, there was also significant hiring in transportation and warehousing. Those sectors added 14,000 jobs.
Mission accomplished?
While this is bad news for people seeking employment, rising unemployment is exactly what the Federal Reserve has been seeking. Policymakers have sought to tame inflation with higher interest rates, in hopes a slowing economy would bring down inflation.
As the Fed concluded its July meeting this week, Chairman Jerome Powell hinted that the Fed could start cutting interest rates in September. The July employment report may make that even more likely.
Julys lackluster jobs report is also having an impact on the financial markets. The yield on the 10-year Treasury bond fell below 4%, which could result in lower mortgage rates.
But the stock market continued a selloff that began Thursday, as investors worried that a slowing economy would result in a recession. However, the price of gold has extended its record run.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-08-02 14:26:44
