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The pace of hiring unexpectedly surged last month, as the U.S. job market showed surprising strength in the face of high inflation and softening economic activity.
Employers added 528,000 jobs in July according to the Labor Department — a significant acceleration from the previous month.
Job gains for May and June were also revised upwards by a total of 28,000 jobs, while the unemployment rate fell to 3.5%, matching its lowest level in decades.
The uptick in job growth surprised analysts who had expected a slowdown. The U.S. economy has now replaced all of the jobs that were lost in the early months of the pandemic.
July’s gains were widespread, with bars and restaurants adding 74,000 jobs, factories adding 30,000 jobs, and retailers adding 22,000 jobs.
Construction companies also added workers, despite a slowdown in homebuilding amid rising interest rates.No signs of widespread job cuts
Separate reports from the Labor Department this week showed the number of unfilled job openings has declined slightly, while the number of people filing new claims for unemployment benefits is inching up.
Still, there’s no sign of widespread layoffs or a sharp jump in unemployment, although some companies like trading app Robinhood have recently announced job cuts.
