The American economy has contradicted fears of a recession, having added an astonishing 528,000 jobs last month.
Pandemic job loss recovered
Unemployment also dropped marginally, from 3.6% to 3.5% matching the 50-year low reached just before the pandemic.
The economy has now recovered all 22 million jobs lost in March and April 2020.
Economists had expected only 250,000 new jobs last month, reduced from June’s revised 398,000.
Instead, July proved to be the best month since February.
The strongest job growth was reported in the healthcare industry and at hotels and restaurants.
The Labor Department noted in its report that 3.9 million people were working part time for economic reasons in July, up by 303,000 from June.
This implies an increase in the number of people whose hours were cut because of slack business.
Nick Bunker, head of economic research at the Indeed Hiring Lab said that it is unwise to underestimate the U.S. labor market.
Labor market today
He acknowledged that output growth might be slowing and the economic outlook is not entirely great.
However, employers are desperately trying to find workers.
While the labor demand may fade, for now it is still “red-hot”.
Recovery post pandemic
Two years ago, the pandemic forced business and the economy to be put on hold.
But of late, the economy has witnessed a surprisingly swift recovery.
This is all thanks to massive government aid.
President Joe Biden credited the job growth to his policies such as his $1.9 trillion coronavirus relief package and $1 trillion bipartisan infrastructure law last year.