The U.S. Bureau of Labor Statistics July Jobs Report is out and the job additions were right in line with early predictions. Ahead of Friday morning’s release, economists were hoping to see 225,000 jobs added to the national workforce. While the numbers came in at 215,000 new jobs, industry experts were still pleased. The average job additions over the last three months now sits at 235,000.
This jobs report and next month’s play a heavy part in helping Federal Reserve policy makers determine whether or not the first U.S. interest rate increase since 2006 will actually happen. Besides job additions, industry experts are also keeping an eye on unemployment rate and wages, which could be a deciding factor for the Fed.
Jobs Report: National Stats
The unemployment rate for July remained virtually unchanged at 5.3%, which was exactly what Economists predicted. A decrease in unemployment, could signal to Fed policy makers that it is time to move the benchmark interest rate off zero. Unemployment rates of 5 to 5.2 percent is the range in which policy makers have indicated marks full employment.
Economists say average wage growth would be another predictor of a looming interest rate hike. Industry insiders say any increase in wages could lead to wage inflation and overall price inflation. In July, average hourly earnings rose 5 cents, or 0.2%, to $24.99. From a year earlier, wages increased 2.1%, up only slightly from the prior month’s 2.0%.
IT Industry Adding More Jobs
The Professional and Business Services sector has once again outperformed the other industries with the addition of 40,000 jobs bringing the total jobs added in the last 12 months to 301,000. Professional, Scientific and Technical Services, a sub-sector of the Professional and Business Services industry, contributed 27,000 new jobs to the industry. Of those, computer systems design and related services added 8,700 jobs and architectural and engineering services added 6,400. The Professional, Scientific and Technical Services had a slight increase in unemployment, but at 3.1%, the number is still well below the national rate.
July Fast Facts
IT Employment and Hiring
With consistent jobs reports over the last 6 months, the IT industry will continue to produce top hiring numbers and low unemployment rates. But what does this mean when it comes to making big hiring decisions for your business? Well, the competition to hire the best talent will ramp up and the ability to connect with the best tech professionals will get harder. Modis can help you stay ahead of your competitors and connect your business with top tech talent. Learn more about how we can move your business forward or contact us today!