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US unemployment rate up 0.2 pp to 4.3% in Jul; LFPR 62.7%

05 Aug '24
2 min read
US unemployment rate up 0.2 pp to 4.3% in Jul; LFPR 62.7%
Pic: Adobe Stock

Insights

  • US unemployment rate rose by 0.2 pp to 4.3 per cent in July, with the number of unemployed rising by 352,000 to 7.2 million.
  • Non-farm payroll employment edged up by 114,000 in the month.
  • The labour force participation rate, at 62.7 per cent, changed little in July.
  • Employment showed little change over the month in manufacturing and wholesale and retail trade
US unemployment rate rose by 0.2 percentage point to 4.3 per cent in July, with the number of unemployed rising by 352,000 to 7.2 million. Non-farm payroll employment edged up by 114,000 in the month—below the average monthly gain of 215,000 over the preceding 12 months, according to the Bureau of Labour Statistics (BLS).

These figures are higher than a year earlier, when the jobless rate was 3.5 per cent, and the number of unemployed was 5.9 million.

Among the unemployed, the number of people on temporary layoff increased by 249,000 to 1.1 million in July. The number of permanent job losers changed little at 1.7 million.

The number of long-term unemployed (those jobless for 27 weeks or more) changed little in the month at 1.5 million. This is up from 1.2 million a year earlier. The long-term unemployed accounted for 21.6 per cent of all unemployed people in July.

The labour force participation rate (LFPR), at 62.7 per cent, changed little in July and was little changed over the year. The employment-population ratio was little changed at 60 per cent in July, but is down by 0.4 percentage point over the year.

The number of people employed part time for economic reasons rose by 346,000 to 4.6 million in July. These individuals, who would have preferred full-time employment, were working part time because their hours had been reduced or they were unable to find full-time jobs.

The number of people not in the labour force who currently want a job increased by 366,000 to 5.6 million in July, largely offsetting a decline in the previous month. These individuals were not counted as unemployed because they were not actively looking for work during the four weeks preceding the survey or were unavailable to take a job.

In July, employment continued to rise in transportation and warehousing (plus 14,000), with job gains in couriers and messengers (plus 11,000) and warehousing and storage (plus 11,000).

Government employment was little changed in July (plus 17,000). Employment growth in government has slowed in recent months, following larger job gains last year and the first quarter this year, a BLS release said.

Employment showed little change over the month in manufacturing and wholesale and retail trade.

Fibre2Fashion News Desk (DS)

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