In the US, unemployment fell in July and continues to point to a robust situation in the labor market. The unemployment rate fell to 3.5 percent from 3.6 percent previously, as announced by the US Department of Labor in Washington. This means that the rate has fallen for the second month in a row. Economists had expected an unchanged rate on average.
The total number of unemployed was around 5.8 million in July, the ministry said. It has thus decreased somewhat compared to the previous month. US President Joe Biden praised the numbers as a result of his policies. Unemployment is at an all-time low and the percentage of working-age Americans with a job is at its highest level in 20 years.
The unemployment rate has been at a very low level for some time. The development of employment plays an important role for monetary policy in the USA. The robust labor market may increase inflation in the US. The US Federal Reserve has been trying for a long time to get the high inflation under control by raising interest rates.
US jobs grew slightly less than expected in July. Outside of agriculture, 187,000 jobs have been added, according to the Ministry of Labor. Analysts had expected an average of 200,000 new jobs. In addition, the increase in employment in the two previous months was revised downwards by a total of 49,000 jobs.
