Unemployment rate falls to pre-pandemic levels in July

Unemployment rate falls to pre-pandemic levels in July

The numbers The U.S. added 528,000 new jobs in July and the unemployment rate fell to pre-pandemic levels in a muscle-flexing display for the economy, but the robust report could add to inflation worries and push interest rates even higher.

Economists polled by The Wall Street Journal had predicted 258,000 new jobs.

The hiring process was broad based. The number of people working finally returned to February 2020 levels.

The unemployment rate fell to 3.5% from 3.6% on Friday, matching the lowest level since the late 1960s.

The federal reserve viewed the large increase in hiring as a result of the large increase in hiring, contrary to a key government report that shows the U.S. teeters on the recession.

The Fed is trying to reverse the worst outbreak of inflation in almost 41 years by raising U.S. interest rates. The cost of borrowing is increased as a result of higher rates for the economy.

The Fed may be convinced that tougher medicine is needed, despite the robust July jobs report. The labor market is making it harder to control inflation because of the tight labor market, which is driving wages higher and making it harder to get inflation under control.

Many companies still fill open positions because of the fact that some businesses have cut back on hiring or even resorted to layoffs. Most of the big companies are offering higher pay for new workers or raising wages for current employees to keep them from leaving.

Hourly pay went up by 0.5% in July to $32.27. The increase in pay over the past year was flat at 5.2%, but it is still one of the fastest increases since the early 1980s.

The economy has slowed as the Fed jacks up interest rates. Gross domestic product has fallen two quarters in a row, meeting an old rule of thumb when it comes to determining when a recession takes place.

The economy is still on a solid foundation and that could keep a recession at bay. The U.S. labor market is the biggest strength.

One of the biggest problems for business is finding enough workers, according to surveys. They might be hesitant to lay off many employees even as the economy slows, as they are hard to find, insulating the U.S. from a severe downturn.

The risks of a recession are rising.

Market reaction: The Dow Jones Industrial Average DJIA and S&P 500 SPX were set to open decline in Friday trades due to the expectation that the Fed will continue to raise interest rates.

The yield on the 10 year Treasury note TMUBMUSD 10 Y rose slightly to 2.8%.