By Karen Stokes
Acting Labor Secretary Julie Su (Photo/US Department of Labor)
The July 2024 jobs report indicates a cooling yet stable labor market. The U.S. added 114,000 jobs in July, a significant drop from the expected figures and the 179,000 increase reported in June.
“The numbers came in cooler than expected but the three-month average of jobs created per month is now 170,000. That is a strong number still consistent with a very strong economy, and a strong labor market,” said Acting Labor Secretary Julie Su.
Su explained that the GDP remains high. Consumer spending is still strong and the labor force participation of working-age individuals is at a two-decade high so all those factors together contribute to the picture of a strong economy.
The unemployment rate ticked up to 4.3% in July from 4.1% in June, the highest level since October 2021.
“Almost everything about the economy under the Biden-Harris administration has defied expectations. People said that they couldn’t bring the unemployment rate down as rapidly as they did. Most people thought a 4% unemployment rate was impossible but the unemployment rate was at or below 4% for over two years. That’s the longest stretch since Neil Armstrong landed on the moon,” explained Su. “And the Black unemployment rate has always been much higher than the overall average. It’s been higher than the white unemployment rate. Under this Administration, the Black/white unemployment gap has been the lowest on record.”
None of the data is necessarily a sign of a recession, experts say, but combined it is building a case for the Fed to cut its benchmark rate in September.