HICKEY Jobs Report Update July 2022
Hickey Jobs Report Update – U.S. adds 528,000 jobs in July 2022
With incredible inflationary pressures across the economy, the U.S. still increased the national workforce by 528,000 jobs in July, according to the latest U.S. Bureau of Labor Statistics Jobs Report. Once again exceeding the expectations of economists, these hiring trends show a strong labor market. The overall jobless rate slightly decreased to 3.5 percent, finally reaching pre-pandemic levels.
Industries leading the hiring surge in July included Food and Services Healthcare, Leisure & Hospitality, Manufacturing, and Professional & Business Services, along with Transportation & Warehousing. Hourly wages rose by 15 cents in July, to $32.27. Over the previous 12 months, the hourly wage has increased by 5.2 percent, slight increase from previous month.
We’re tracking these latest updates, along with labor force participation rates, wage shifts, and inflationary concerns – here are the five things you need to know from the latest U.S. Jobs Report:
As inflationary pressures were felt across the economy, American companies still continued their hiring surge, exceeding economist expectations. With 528,000 new jobs in July, the U.S. economy has added more than 3.4 million new workers since the beginning of 2022.
The dynamic Professional and Business Services sector continued their torrid pace in July by adding another 89,000 jobs. Overall, the industry has 896,000 more workers than pre-pandemic levels.
Hourly wages increased once again in July with a 15-cent rise, which puts overall wage inflation now at 5.2 percent over the past twelve months. Tracking to a key inflationary measurement, the consumer price index is now at 9.1 percent, thus hourly compensation is still trailing.
After finally reaching pre-pandemic levels last month, the Manufacturing sector have continued their hiring growth with the addition of 30,000 employees in July. With increased interest in reshoring production to the U.S., the hiring bump is expected to continue across American manufacturing sectors.
The jobless rate decreased slightly from the previous month to 3.5 percent, finally reaching pre-pandemic levels. However, the total Labor Participation Rate did slightly decrease in July to 62.1 percent, another core metric tracking economic health.
For more information and insights on the latest U.S. Jobs Report, check the latest update from our Hickey Location Analytics and Incentives Team: Bureau of Labor Statistics Employment Situation Summary website.
Report Summary
According to the latest U.S. Jobs Report, the July 2022 Employment Situation Summary, U.S. Bureau of Labor Statistics Jobs Report, American businesses increased the nation’s payrolls once again while the country is amidst major inflationary pressures. With 528,000 new jobs in July, the U.S. economy added roughly 3.4 million jobs since the beginning of 2022.
With that calculation for year-to-date hires, the federal labor agency did revise their previous projections, setting employment in May and June combined to be 28,000 jobs higher than previously reported.
Strongest gains were in Food Services, Healthcare, Leisure & Hospitality, Manufacturing, and Professional & Business Services, along with Transportation & Warehousing, among others.
America’s jobless rate slightly decreased from the previous month to 3.5 percent, which is finally at pre-pandemic levels. The labor force participation also saw a slight decrease by 0.1 percent from the previous month to 62.2 percent.
According to the release, U.S. hourly wages increased by 15 cents in July, increasing slightly. Total wage inflation over the previous 12 months increased to 5.2 percent. According to another Bureau of Labor Statistics survey, the consumer price index continued to increase in July, which saw a jump to 9.1%
Key Industries
Leisure and Hospitality
The Leisure & Hospitality sectors maintained a torrid hiring streak by adding 96,000 jobs in July. Altogether, the largest gains came from Food Services & Drinking places at 74,000 new jobs. Overall, industry employment is still down by 1.2 million, or 7.1 percent from February 2020.
Professional and Business Services
Building on last month’s growth, the dynamic Professional & Business Services sectors added 89,000 jobs in July and are now 986,000 above pre-pandemic levels. Biggest gains came from Management of Companies and Enterprises with 13,000 new hires, and Architectural and Engineering Services adding 13,000 jobs nationwide.
Manufacturing
Manufacturing added another 30,000 jobs in July. Job growth was primarily seen in Durable Goods Industries with 21,000 new additions to their payrolls, and 4,000 jobs added to the Semiconductors and Electronic Components. In all, Manufacturing employment has returned to pre-pandemic levels by adding 41,000 more Manufacturing jobs above the February 2020 number.
Retail Trade
Retail Trade increased employment by 22,000 in July following their summer decline in jobs. Growth was seen in Food and Beverage stores with 9,000 added jobs as well as in Merchandise stores adding 8,000 jobs and is still above pre-pandemic levels by 208,000 jobs.
Transportation and Warehousing
Keeping up their incredible job creation momentum, Transportation & Warehousing increased payrolls by 21,000 jobs in July. The Air Transportation industry added 7,000 more jobs, and Support Activities for Transportation hired 6,000 more workers. The latter two sectors are strong signs for the nation’s challenged supply chain. Overall, the industry has 745,000 more workers today than levels seen in February 2020.
Health Care
Following a drop from pre-pandemic levels, employment in healthcare has dropped 0.5% or by 78,000 jobs from their February 2020 levels. Nevertheless, the industry added 70,000 jobs in July, gains in employment came primarily from Ambulatory Health Care Services adding 47,000 jobs, Hospitals adding 13,000 jobs and Nursing and Residential Care Facilities increasing by 9,000.
Other Notable Industries
In other notable industries, Government employment increased by 57,000 jobs, Construction employment rose by 32,000, and the Social Assistance sector brought on 27,000 jobs during July.
For more information on the latest Jobs Report, including additional details on the data concepts and statistical methodologies utilized, visit the Bureau of Labor Statistics Employment Situation Summary website.
If you are interested in learning more about the jobs reports, along with how we support our clients with dynamic labor analytics, we would be excited to connect one of our location strategy experts: