THE JULY EMPLOYMENT RESULTS
By: Hope Wilkos, Writer/Blogger Photographer: George Whylie Videographer: Maxine NolanMarkets rallied yesterday due to the more positive reports on the job front and better than expected results from the release of the statement on the employment situation for July.
Each month as the statement is released, there is evidence that the economy is on the upswing. As we are all aware, President Obama has proposed an extension of middle class tax cuts that would prevent the typical middle class family from a $2,200 tax increase next year. Although the American Jobs Act is still waiting to be passed, President Obama supports further investment in infrastructure to build the Nation’s ports, roads and highways along with assistance to the state and local governments to prevent layoffs and rehire hundreds of thousands of teachers and first responders.
Bureau of Labor Statistics shows a 172,000 job increase and non-farm payroll jobs rose by 163,000. In the last 29 months, the private sector has added 4.5 million jobs. The increase in the unemployment rate was only slightly higher, 8.3% for July as compared to 8.217% in June.
Manufacturing added 25,000 jobs. A total of 532,000 manufacturing jobs have been added since January 2010 – a very strong growth rate. Motor vehicle and part jobs added 12,800 in July, one of the strongest growths since January 2011. Obama is proposing tax incentives for manufacturers, enhanced training for the workforce and measures to create manufacturing hubs and discourage sending jobs overseas.
Net job increases took place for the following sectors: 49,000 for professional and business services, 38,000 for education and health services, 27,000 for leisure and hospitality with the addition of 29,400 restaurant jobs and finally 9,200 for wholesale trade.
Government lost 9,000 jobs as State government payrolls fell by 6,000. Local governments released 7,000 education jobs. The government has lost 485,000 jobs since February 2010.
As we draw closer to the November elections, it will be critical to see what the following months bring in the way of job creation.
STATEMENT RELEASED BY ALAN B. KRUEGER, CHAIRMAN OF THE COUNCIL OF ECONOMIC ADVISORS
