LieutenantRedPandaMaster496
Overview For this reading, you will use social annotation to…
Overview
For this reading, you will use social annotation to comment and take notes. Social annotation is a way to read and take notes with your classmates. Social annotation is reading and thinking together. It brings the age-old process of marking up texts to the digital learning space while also making it a collaborative exercise. The tool that makes this possible is Hypothes.is.
US economy adds 528,000 jobs in
July, blowing past expectations
By Megan Henney | Aug. 5th, 2022 Send to Kindle
U.S. job growth unexpectedly accelerated in July, defying fears of a slowdown in
hiring even as the labor market confronts the twin threats of scorching-hot
inflation and rising interest rates.
Employers added 528,000 jobs in July, the Labor Department
said in its monthly payroll report released Friday, blowing past
the 250,000 jobs forecast by Refinitiv economists. The unemployment rate,
meanwhile, edged down to 3.5%, the lowest level since the COVID-19 pandemic
began more than two years ago.
The U.S. has now replaced all over the jobs that were lost during the pandemic.
Job gains were broad-based in July, with leisure and hospitality leading the way in
hiring, adding 96,000 new workers. That was followed by professional businesses
services (89,000), health care (70,000) and government (57,000). Construction
contributed 32,000 new jobs while manufacturing added 30,000.8/8/22, 2:10 PM Mercury Reader
https://www.foxbusiness.com/economy/us-economy-adds-528000-jobs-july-blowing-past-expectations 2/4
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HOW DEMOCRATS’ BEEFED-UP IRS COULD HURT LOW-INCOME
AMERICANS
The uptick in hiring comes amid a growing consensus that the economy is losing
momentum as the Federal Reserve hikes interest rates at the fastest pace in
decades to wrestle inflation under control. The Commerce Department reported
last week that gross domestic product, the broadest measure of goods and
services produced in the nation, shrank 0.6% in the three-month period from
April to June. That followed a decline of 1.6% in the first three months of the
year.
With back-to-back quarterly declines in GDP, the economy meets the technical
criteria for a recession.
While many economists have argued the strong jobs market has so far prevented
the U.S. from sliding into a downturn, job growth momentum is expected to cool
markedly in coming months as companies cut staff in order to accommodate for
lower demand.
Jobless claims have started to steadily tick higher in recent
weeks and a plethora of companies, including Alphabet’s Google,
Walmart, Apple, Meta, Robinhood and Microsoft, have announced hiring freezes
or layoffs in recent weeks.8/8/22, 2:10 PM Mercury Reader
https://www.foxbusiness.com/economy/us-economy-adds-528000-jobs-july-blowing-past-expectations 3/4
“A powerful increase in July employmentat 528,000, the largest since last
Decemberunderscored bedrock support from the labor market, putting the
economy on a more gradual trajectory for a recession,” said Gary Schlossberg, a
global strategist at Wells Fargo Investment Institute.
DEMOCRATS’ MINIMUM CORPORATE TAX WOULD HIT THESE
INDUSTRIES THE HARDEST
Now Hiring signs are displayed in
front of restaurants in Rehoboth
Beach, Delaware, on March 19, 2022.
((Photo by STEFANI REYNOLDS/AFP
via Getty Images) / Getty Images)
The incredibly tight labor market is in
part fueling record-high inflation, as millions of workers are seeing the largest
pay gains in years – the result of companies competing with one another for a
limited number of employees. Earnings rose 5.2% in July from the previous year,
much higher than the pre-pandemic average of 3%. On a monthly basis, wages
rose 0.5%, coming in hotter than economists expected.
The surprisingly strong July jobs report, coupled with hotter-than-expected wage
growth, could pave the way to a third consecutive 75-basis point increase – triple8/8/22, 2:10 PM Mercury Reader
https://www.foxbusiness.com/economy/us-economy-adds-528000-jobs-july-blowing-past-expectations 4/4
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the usual size – at the Fed’s next policy-setting meeting in September. Traders are
already pricing in a 64% chance of another super-sized increase in the fall.
That could create even more burdens for businesses because hiking interest rates
tends to create higher rates on consumer and business loans, which slows the
economy by forcing employers to cut back on spending.
The jump in payroll growth “is not quite what the Fed was hoping to see,
particularly the acceleration of average hourly earnings to a 0.5% month-over-
month growth pace,” said Jason Pride, chief investment officer of private wealth
at Glenmede. “All else equal, this should take away any excuse from the Fed to
begin slowing down its tightening pace, as there are still few concrete signs of
inflation returning to normal.”
CLICK HERE TO READ MORE ON FOX BUSINESS
Markets sank Friday morning as the data dashed hopes of a more dovish Fed in
coming months.
https://www.foxbusiness.com/economy/us-economy-adds-528000-jobs-july-blowing-past-expectations8/8/22, 2:04 PM Mercury Reader
https://www.cbsnews.com/news/jobs-report-528000-july-08-05-2022/ 1/4
cbsnews.com
Hiring surged in July, with employers
adding 528,000 jobs Send to Kindle
moneywatch
By Aimee Picchi
Updated on: August 5, 2022 / 7:13 PM / MoneyWatch
Hiring surged in July, with U.S. employers creating 528,000 jobs last month, the
Labor Department said Friday. That far exceeded economist expectations for
gains of 250,000 new jobs during the period. It was also a jump from the previous
month, when businesses added 372,000 jobs despite the highest inflation in 40
years.
The unemployment rate ticked down to 3.5% from 3.6% in June, marking the
lowest since February 2020, just before the COVID-19 pandemic erupted in the
U.S. Before the latest payrolls report, the economy was adding roughly 450,000
jobs per month.8/8/22, 2:04 PM Mercury Reader
https://www.cbsnews.com/news/jobs-report-528000-july-08-05-2022/ 2/4
Both total nonfarm employment and the jobless rate have returned to their pre-
pandemic levels.
Jill on Money: Addressing the hiring surge, inflation and a
possible recession 02:30
The employment numbers underscore the resilience of the economy following
two straight quarters of declining GDP, which is considered a hallmark of a
recession. Despite this shrinking economic growth, hiring has remained robust as
businesses continue to add jobs and hold onto their current workers amid strong
consumer demand.
“This is a job market that just won’t quit. It’s challenging the rules of economics,”
said Becky Frankiewicz, chief commercial officer of hiring company
ManpowerGroup in an email after the data was released. “The economic
indicators are signaling caution, yet American employers are signaling
confidence.”
Why stocks may fall8/8/22, 2:04 PM Mercury Reader
https://www.cbsnews.com/news/jobs-report-528000-july-08-05-2022/ 3/4
Last month’s booming job growth is likely to weigh on stocks in the short term
because it suggests the Federal Reserve can continue to aggressively ratchet up
interest rates in order to tamp down inflation. S&P 500 futures were down 0.7%
prior to the market’s open on Friday, according to FactSet.
The central bank has been boosting rates in an effort to tame inflation, which is
running at the hottest levels in four decades. With the Fed’s four rate hikes so far
this year, it’s becoming more expensive for consumers and businesses to borrow.
Economists had expected that would contribute to businesses stepping back
from hiring, but July’s numbers demonstrate that employers are continuing to
add workers.
The July payroll figure “reflects an economy operating at a very robust level, one
that’s obviously not in recession and that can withstand tighter monetary policy,”
Wall Street analyst Adam Crisafulli of Vital Knowledge said in a client note.
Despite the strong labor market, other indicators show the economy is slowing
down as the Fed pumps the brakes. Some analysts point out that job growth
alone is an unreliable indicator of a downturn, noting that hiring often remains
strong in the early stages of a recession.
For example, in the three months immediately preceding the housing crash-
induced recession that started in December 2007, the Labor Department’s8/8/22, 2:04 PM Mercury Reader
