The last several months proof the value of not overreacting to any one employment report. Especially when we’re already at the lowest unemployment rate in 50 years. Weaker reports might mean that hiring is really slacking off, or it might mean that the labor market is so tight it’s hard for employers to hire when they’re looking to do so. Friday’s employment report, the first for the second half of the year showed a continuation of the first half, with a huge bonus. We’re seeing the long-term unemployed, marginally attached and underemployed receive record opportunity as companies are providing better jobs and opportunities to people in those situations.
First, let's start with the unemployment rate staying at 3.7%, with +164,000 jobs and negative revisions from past months totaling -41,000 jobs.
Top industries for hiring:
- #1 Professional & Technical Services
- #2 Healthcare
- #3 Social Assistance
There were three important takeaways. First, healthcare has been consistently a leader in hiring but other industries like social assistance ramping up hiring are new. Second, small businesses are continuing to struggle to hire as they compete against larger companies for talent. Lastly, a resurgence in manufacturing and construction hiring continued in July which is a good sign, the demand is still growing in the economy, even if the rate of growth is slowing down.
The real unemployment rate once underemployed, long-term unemployed and marginally attached people are accounted for is 7% down from 7.5% year over year.
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