Economists were expecting good results for July's number of job creation, but were surprised by the actual numbers that were reported on Friday. From the 188,000 jobs that were expected to be created in July, businesses in the US created 255,000 jobs. Although the unemployment rate was expected to drop, even with the added jobs, the rate stayed at 4.9%, a number that still bodes well for the economy.
The breakdown of job creation saw 70,000 new jobs in Professional and Business Services, 43,000 in health care positions, 18,000 on Wall Street, 45,000 in Leisure and Hospitality, 38,000 added in government, 14,000 in construction, 9,000 in manufacturing and 18,000 in miscellaneous industries. The private sector added 217,000 jobs and the public sector added 38,000.
Despite GDP growing only 1% in the first half of the year, economists are projecting that it will increase by 3.7% in the third quarter. This has also caused employers to finally believe that the country will experience steady growth, despite low GDP numbers. Firms think the economy will grow 1-2% and they're hiring in anticipation of that number continuing, so a shortfall in filled jobs may be on the horizon.
The stock market rose and the jobless rate among teenagers has fallen from 16% to 15.4% with the Hispanic rate dropping from 5.8% to 5.4%. 2016 has been a great year so far. It seems in this election year our financial outlook keeps improving with our unemployment rate remaining low and job creation growing rapidly.
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