March 9, 2021

Unemployment in the US it remains at 3.7%, with 164,000 new jobs


The unemployment rate in the United States remained at 3.7% in July, close to the lowest levels in half a century and in a month in which the economy added 164,000 jobs, the government reported Friday.

The Labor Department report shows that job creation was slightly below the expectations of analysts, who had anticipated some 171,000 new jobs.

The average job creation in three months was 140,000 jobs, the lowest in almost two years, a fact that some analysts see as a sign that there is a gradual decline in job creation and others have considered a sign that economic activity is losing momentum.

This week, for the first time in almost a decade, the Federal Reserve lowered the reference interest rate, a measure that President Donald Trump deemed insufficient when the US economy is celebrating its tenth year of uninterrupted growth.

At the end of the meeting of the Fed's Open Market Committee, which directs the monetary policy of the United States, the president of the Jerome Powell institution indicated that the central bank carefully observes the events in international trade.

The Labor Department report was followed by declines in financial markets with a 0.83% drop in the Dow Jones Index, a 0.99% drop in the Standard & Poor Index, and a 1.6% drop in Nasdaq .

The S&P and Dow Jones indices have dropped more than 2.5% this week, but factors such as the escalation of the trade war with China have been added to this.

President Trump announced on Thursday that he will impose new tariffs of 10% on Chinese export products valued at $ 300 billion from September 1, which will cover all imports of the Asian giant to the country, an issue that maintains seemingly more worried investors.

The report noted that the average salary rose in July by eight cents, or 0.3%, to $ 27.98.

In the last twelve months, salaries have increased by 3.2% compared to 3.1% in the twelve months until June.

The average hours worked per week fell by 0.1 hours to stand at 34.3 hours, mainly due to a decrease in manufacturing activity.

The service sector led the addition of jobs, with 31,000 new jobs, followed by health care activities, which added 30,000 new employees.

The manufacturing sector created 16,000 jobs, and many firms have reduced working hours to their lowest level since 2011.

Some 9,500 of these new jobs occurred mainly in the automotive vehicle industry and its parts, a result of consumer optimism and a reflection of rising wages.

The machinery and steel industries, which depend more on exports and are more affected by Trump's aggressive foreign trade policy, lost 5,000 jobs last month and have had no business growth in almost a year.

The labor force participation rate, that is, the proportion of Americans who are employed or seeking employment, improved slightly to 63%, one tenth above June.

July has been the 106th month in which the unemployment rate has remained at its lowest level in half a century, signaling the longest streak of bonanza in the labor market that is recorded.

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