July Jobs Report: U.S. Adds 114,000 Jobs

In July 2024, the U.S. labor market continued to grow, although at a slower pace, with an addition of 114,000 jobs. This marks a significant slowdown compared to previous months. The unemployment rate rose to 4.3%, up from June’s 4.1%.

Is the U.S. Job Market Growing?

While the labor market remains resilient, the July data suggests a more cautious outlook. The smaller job gains and rising unemployment rate may reflect the economy’s response to various challenges, including monetary policy adjustments and global economic uncertainty.

U.S. Unemployment Rates by Group

• Adult women: 3.8% (up from 3.7%)
• Adult men: 4.0% (up from 3.8%)
• Teenagers: 12.4% (up from 12.1%)
• Whites: 3.8% (up from 3.5%)
• Blacks: 6.3% (unchanged)
• Asians: 3.7% (down from 4.1%)
• Hispanics: 5.3% (up from 4.9%)

Key Employment Statistics for July 2024

• The number of long-term unemployed remained stable at 1.5 million, accounting for 21.6% of all unemployed individuals.
• Part-time employment for economic reasons rose to 4.6 million, an increase of 346,000.
• Average hourly earnings for all employees on private nonfarm payrolls increased by 8 cents to $35.07, reflecting a year-over-year increase of 3.6%.

Sectors with Notable Job Growth in July

Healthcare

The healthcare sector added 55,000 jobs, continuing its robust growth. Notable gains were seen in home health care services (+22,000), hospitals (+20,000), and nursing and residential care facilities (+9,000).

Construction

Construction employment increased by 25,000, aligning with its average monthly gains over the past year. The growth was driven primarily by specialty trade contractors, which added 19,000 jobs.

Transportation and Warehousing

This sector added 14,000 jobs, with notable growth in couriers and messengers (+11,000) and warehousing and storage (+11,000). However, these gains were partially offset by losses in transit and ground passenger transportation (-11,000).

Government

Government employment saw a modest increase of 17,000 jobs, a slower pace compared to earlier in the year, reflecting a deceleration in public sector hiring.

July Jobs Report Summary

The July jobs report reflects a labor market that is still growing, but at a reduced pace compared to previous months. The rising unemployment rate and more modest job gains suggest that the economy may be entering a period of slower growth. As always, monitoring future reports will be crucial to understanding whether this is a temporary slowdown or a longer-term trend.