July Saw Job And Wage Growth

| by Amanda Andrade-Rhoades

According to a new report from the White House, employment was on an upswing in July. 

The private sector added 210,000 jobs in July and the unemployment rate is at a seven-year low at 5.3 percent. The current unemployment is not at its pre-recession average for the first time in history. The report also noted job growth was especially strong in the financial sector, as well as retail and health care and social assistance.

The employment report, which was released on Aug. 7,  also revised the payroll data for May and June, indicating that 14,000 more jobs were added than previously reported. All of the new data could indicate a rate hike from the Federal Reserve - rates have not been raised since 2006. 

"We view this report as easily clearing the hurdle needed to keep the Fed on track for a September rate hike. The bar for not moving now is much higher," Rob Martin, an economist at Barclays in New York, told Reuters.

In addition to the job growth, hourly earnings increased by five cents, which is 2.1 percent higher than a year ago.

Despite the promising facts and figures, the author of the report, Jason Furman the Chairman of the Council of Economic Advisers, urged caution. “…Despite the rapid pace of recent growth, some slack left over from the financial crisis remains in our labor market, and there is more work to do to ensure that we continue to make progress.”

Sources: White House, Reuters Image via Official U.S. Navy Page/Flickr