The unemployment rate rose to the highest level in 32 months in July, as job growth plummeted from June’s mark, the U.S. Bureau of Labor Statistics (BLS) reported Friday.
The seasonally-adjusted unemployment rate rose to 4.3 percent in July, up from 4.1 percent in June, hitting the highest level since October 2021 (4.5 percent). July’s unemployment rate was also well above year-ago (3.5 percent in July 2023).
Job growth plunged to 114,00, disappointing analysts’ expectations and off from a downwardly-revised 179,000 increase in June. As a result, July’s job growth was far below the 200,000 level considered “normal” for a month.
The ranks of the unemployed swelled 352,000 from the month before, hitting 7.2 million and surpassing year-ago’s 5.9 million level. The number of people employed part time for economic reasons rose by 346,000 to 4.6 million, compared to June.
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Those not in the labor force who currently want a job increased by 366,000 to 5.6 million in July. These individuals were not counted as unemployed because they were not actively looking for work during the 4 weeks preceding the survey or were unavailable to take a job.
Meanwhile, BLS lowered its estimated number of jobs created for both May and June by a combined 29,000.
Government employment – a major contributor to job growth for more than a year – increased by a mere 17,000 jobs in July, down from a 70,000 increase in June. From June 2023 to June 2024, the government sector had added nearly fifty thousand jobs monthly to the nation’s total increase.