Despite a contraction in the economy and galloping inflation, the job market showed unexpected dynamism in the United States in July. The unemployment rate fell 0.1 percent to 3.5 percent, returning to its pre-pandemic level, the Labor Department said Friday.
The month of July exceeds the expectations of analysts in the United States. 528,000 jobs were created, twice as many as expected. Creations were recorded in almost all sectors, including leisure, hospitality, professional and commercial services, and healthcare.
In addition, the creation of May and June was revised upwards to 386,000 and 398,000 respectively, representing 28,000 more jobs than announced.
This rebound in employment, however, comes at a time when concern is growing about the strength of the US economy; indeed, it has contracted over the past two quarters, reviving the specter of recession.
The health of the labor market is under close scrutiny by markets as it could encourage the Federal Reserve to raise rates by 75 basis points in September for the third time this year.
There are now “more people working in the United States than before the pandemic began,” and even “than at any time in American history,” the U.S. president hailed from the White House. The employment figures are good news for Joe Biden and the Democrats, a few months before a crucial election deadline, which will see the renewal of a large part of the elected representatives of Congress in November.