Kansas City Jobs Report

5 Things to know about July’s national job report

The unemployment rate dropped to 3.9% in July of 2018 with 157,000 jobs added. This is fewer than the 193,000 jobs predicted but is just a point below May’s record for the lowest unemployment rate since pre-recession days at 3.8%. This is the 94^th consecutive month of job growth.

Nearly every major industry sector showed job growth for the month of July – even retail, which typically trends downward during the summer, then edges back up closer to the holidays.

Payrolls also grew in July by 7 cents – though according to the New York Times, just barely faster than inflation. Average hourly earnings have increased by 71 cents total, or 2.7%, over the past year, and continue to be the spotlight of the job market. Though some employers have realized the need to raise pay rates in order to attract the talent they need, it’s yet to be a true nationwide “trend,” though we predict the onset of seasonal hiring in the next few months might change that.

Here are 5 other things to know about July’s jobs report: 

1. Rising Rates: The Federal Reserve plans to raise interest rates twice more this year – once in September, and once in December – due to the current health of the economy.

2. Construction Complex: Construction added 19,000 jobs in July, despite reports that the US housing market is slowing down. According to Business Insider, 2018 has seen the worst housing affordability in nearly a decade, and mortgage rates are rising, creating the perfect potential recipe for a slowdown in the near future.

3. Tariffs & Trades: Headlines are reporting China plans to impose tariffs on $60 billion of US goods due to growing trade tensions with the US. Manufacturing added 37,000 jobs in July, with most of these gains directly within the durable goods sector. Time will tell how future tariffs and tensions may impact US manufacturing.

4. Corporate Sentiment: Despite the tariffs, the resilience of corporate sentiment in today’s economy makes the overall price tag of tariffs manageable, according to Bloomberg.

5. Healthy Health Care: Health care and social assistance rose by 34,000 in July. The industry has increased by 286,000 over the year, with hospitals adding 7,000 workers in July, and individual and family services adding 16,000.