US employers add 528,000 jobs in July; unemployment falls to 3.5%

WASHINGTON — America’s employers added a stunning 528,000 jobs last month despite raging inflation and anxiety about a possible recession, restoring all of the positions lost in the coronavirus recession.

Unemployment fell to 3.5 percent, the lowest level since the pandemic struck in early 2020.

There were 130,000 more jobs created in July than there were in June, and the most since February.

The red-hot jobs numbers from the Labor Department on Friday arrive amid a growing consensus that the economy is losing momentum. The U.S. economy shrank in the first two quarters of 2022 — an informal definition of recession.

But most economists believe the strong jobs market has kept the economy from slipping into a downturn.

Friday’s surprisingly strong report will undoubtedly intensify the debate over whether America is in a recession or not.

“Recession – what recession?” wrote Brian Coulton, chief economist at Fitch Ratings, after the numbers came out.

“The U.S. economy is creating new jobs at an annual rate of 6 million – that’s three times faster than what we normally see historically in a good year.” Economists had expected only 250,000 new jobs in July.

There are, of course, political implications in the jobs numbers Friday: Americans have grown increasingly anxious about rising prices and the risk of recession. It most certainly will be at the forefront of the minds of voters during November’s midterm elections as President Joe Biden’s Democrats seek to maintain control of Congress.

Biden took credit for the resilient labor market Friday, saying “it’s the result of my economic plan.” The president has boosted job growth through his $1.9 trillion coronavirus relief package and $1 billion bipartisan infrastructure law last year. Republican lawmakers and some leading economists, however, point to that government spending as the reason for current inflation levels which haven’t been seen in 40 years.

And for millions of Americans it is the fading power of the paycheck that remains front and center. (AP)

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