Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. Nonfarm Payrolls Soar 528,000 in July

Economic Indicators Aug 05, 2022 15:22
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Scott Kanowsky 

Investing.com -- U.S. job growth unexpectedly accelerated in July, running counter to concerns that soaring price inflation and surging interest rates are hitting labor demand in the world's largest economy.

According to the Labor Department, non-farm payrolls rose by 528,000 during the month versus the revised figure of 398,000 in June. Analyst had expected the reading to slide to 250,000.

The unemployment rate also ticked slightly lower to 3.5%.

Friday's release may bolster the case made by some officials in Washington that, despite recently weak economic data, the U.S. is not facing an imminent recession.

Fueling these fears, in particular, was gross domestic product in the U.S., which fell in the second quarter. That meant the country has now posted two straight three-month periods of contraction, fulfilling the widely accepted criteria for a "technical recession." However, the National Bureau of Economic Research, who ultimately arbitrates whether the U.S. has tipped into a recession, has not made such an announcement yet.

Claims for unemployment benefits also edged up to nearly a seven-month high of 260,000 last week, adding to speculation that the labor market may be starting to slow as pressure - especially from eye-watering consumer price growth and higher borrowing costs - mounts on the broader economy.

But the Biden administration has moved to reassure Americans that the economy remains resilient, arguing that it is instead experiencing an inevitable post-boom deacceleration in activity.

Meanwhile, Federal Reserve chairman Jerome Powell pushed back last week against the notion that the below-zero GDP print signals a recession. Powell said that interest rates, which the Fed has been aggressively lifting in a bid to cool red-hot inflation, could stand to jump even higher without weighing on the economy.

Futures on all major Wall Street indices were lower in the wake of the jobs report, while the U.S. Dollar Index zoomed up by 0.81% to 106.52 as of 08:54 EST (1254 GMT).

U.S. Nonfarm Payrolls Soar 528,000 in July
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email