The US economy created 117,000 jobs in July, a better-than-expected result, according to the US Labor Department. The figure was better than June’s, which was itself revised up from 18,000 to 46,000.
By and large unemployment rate in July fell to 9.1% from 9.2%. The news helped the Dow Jones share index to seal higher. It comes after the index suffered its biggest one-day drop since 2008 on Thursday due to worries about the global economy.
The figure of unemployed people fell to 13.9 million, down from 14.1 million. President Obama highlighted the number of private sector jobs added not just last month but for the past year-and-a-half, but approved that there is ample room for improvement.
President said that we are likely to get through this. Things will get better and we’re going to get there together.
Forecasters welcomed the improved jobs figures, which came after current data on economic growth and customer spending had raised questions about the power of the US recovery.
Small Businesses added 154,000 jobs, but the government cut 37,000 jobs . But, 23,000 of those losses were linked to a temporary shutdown of Minnesota’s state government which meant workers did not get paid that month.
Jobs were produced in developed, retail, health care, hotels and restaurants. Average hourly earnings also increased by 0.4%, though weekly earnings remained unmovable. On the other hand, the jobs figures may provide only a limited comfort to investors worried about the US economy.
The figures profited from a decline in the number of workers looking for a job which abridged the number of people registered as unemployed. That suggests that rather than finding work some job seekers are instead giving up in search of employment.
Yesterday, Stock markets in the US opened higher, but fell back during the morning.