U.S. economy adds 209000 jobs in July

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Before the jobs data, Jefferies economists Ward McCarthy and Thomas Simons characterized subdued wage gains as "unprecedented" at this advanced stage of the business cycle, but said they see "a more sustained cyclical acceleration going forward".

In research published today to coincide with the jobs numbers, the Brookings Institution said July's job gains meant the United States had finally recovered from the damage done to labor markets by the Great Recession. That was the biggest rise in five months. "Average hourly earnings were up 2.5 percent from a year ago".

"I have only just begun", he wrote.

The number of individuals categorized as involuntary part-time workers-seeking full-time employment but working part time-held at 5.3 million in July.

Hiring was particularly strong in restaurants and bars, which added 53,100 jobs.

The average workweek for all employees was unchanged month over month at 34.5 hours.

As far as rate policy is concerned, the Fed remains fixated on the idea that the US economy is near full employment.

"This should keep the chances of a December rate rise alive".

Prior to the release of the report, economists polled by Reuters forecast a tally of 183,000 additional jobs to public and private, non-farm payrolls.

President Donald Trump celebrated the report in a tweet shortly after the numbers were released. "More people are coming into the labor force and finding jobs". Movement back to USA! Those are signs the labor market is further tightening.

But after six months in office the Trump administration has failed to pass any economic legislation and has yet to articulate a plan for much of its economic agenda.

The strong figure is likely to support the Federal Reserve's plans to raise interest rates.

May and June payrolls were revised up by 2,000. The unemployment rate fell to 4.3%, matching a 16-year low.

Another continual worry spot is wage growth, which remains sluggish.

The composition of the job gains in July mirrored June's. The unemployment rate rose a tick from 4.3 to 4.4 percent, largely because the labor force grew by 361,000; the labor force participation rate also rose a tick to 62.8 percent. The U-3 figures have plateaued more or less around 4.3% over the last few months, while the U-6 unemployment rate has been at 8.6% three of the last four months.

"Unemployment is at a 16 year low", Trump said.

From May to July, the monthly job gains have averaged 195,000, considered as a healthy pace by many economists. The U.S. trade gap narrowed sharply in June as a strengthening global economy pushes up demand for American exports overseas. Education and health care, which includes both higher-paying and lower-paying jobs, gained 54,000.

U.S. auto sales fell 6.1 per cent in July from a year ago to a seasonally adjusted rate of 16.73 million units.

Solid hiring last month.