Created 528,000 jobs in July – E24

This is shown by figures from the US Department of Labor.

In advance, the economists had predicted that the number would be 250,000, according to Bloomberg. Unemployment was expected to remain at 3.6 percent.

The fact, however, shows that 528,000 more people were employed outside agriculture.

At the same time, unemployment fell to 3.5 percent. It is the same level as before the pandemic and the lowest since 1969, according to Bloomberg.

In addition, last month’s job growth is adjusted upward, from 372,000 to 398,000 new jobs.

I believe that strong job figures can lead to higher interest rates

The report is closely followed by the US central bank, the Federal Reserve, and the market.

The central bank has raised the interest rate sharply in order to overcome soaring inflation, and the development in the labor market is one of the conditions that determines the way forward for the key interest rate.

Chief strategist at Danske Bank, Anders Johansen, points out that 250,000 new jobs had been predicted in advance. Figures lower than this would lead to a high probability that the Fed would not raise interest rates further and earlier than expected.

– As the number was significantly stronger than expected, the opposite will happen, says Johansen to E24.

The average hourly wage increased by 0.5 percent last month, after rising by 0.4 percent in June, writes Reuters.

– Hourly wages continue to rise and that the corresponding figures for June and May were revised upwards, which means that the report is even slightly stronger, says Johansen.

Data from last week showed that annual wage growth in the second quarter was the fastest since 2001.

Unemployment claimant

In a report on Friday morning, Handelsbanken writes that job growth in the US has now begun to slow down.

– The companies’ employment plans are down from the top, and the last few weeks have also shown a trend-setting rise in the number of new unemployment benefit applicants. But even with slowing job growth, the pace is still good enough to keep up with the workforce, says the report from Handelsbanken.

The market expects the monthly growth in hourly wages in July to be 0.3 per cent. According to the Handelsbank report, it is relevant to pay extra attention to the wage figures.

– Should the wage figures come in on the strong side of expectations today, the Fed will be put under more pressure.

In June, the Fed, the US central bank, raised the key interest rate by 0.75 percent – a triple interest rate hike.

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