: July jobs report is good news for those seeking a pay raise: ‘This remains one of the strongest job markets in the past 50 years’

by | Aug 5, 2022 | Stock Market

Will more jobs mean higher wages? The government’s latest jobs report showed the U.S. economy gained 528,000 jobs last month, with the unemployment rate falling to 3.5% from 3.6% the previous month. The sharp rise in hiring surprised Wall Street: Economists polled by The Wall Street Journal had forecast just 258,000 new jobs last month.

That’s good news for the economy, but will likely give the Federal Reserve more motivation to raise interest rates to temper inflation, now at a 40-year high. It’s a delicate balancing act: The Fed aims to prevent the economy from overheating without killing consumer demand and, consequently, job growth. Thus far, however, wages are on the up. Over the past 12 months, average hourly earnings have increased by 5.2% to $32.27 in July, the Bureau of Labor Statistics said — one of the fastest increases since the early ’80s.Services sector shows strength “Strong demand for workers continues to push wages up,” said Mike Fratantoni, senior vice president and chief economist at the Mortgage Bankers Association. “The unemployment rate fell to 3.5%, matching the pre-pandemic low. With business demand for workers still strong, wage pressures should persist.” Gross domestic product and other recent data releases showed a shift in activity from goods-producing to service-providing sectors, he added. “This report matched that, sho …

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