More Jobs, Higher Unemployment Rate, July Report Says
U.S. employers created 163,000 new jobs in the month of July, but unemployment rate still rises.
(Image Source: Bureau of Labor Statistics ) BY JOHN O’CONNOR ANCHOR JIM FLINK U.S. employers created 50,000 more jobs than economists expected last month. CNN’s World Business Today has more . “Non-farm payrolls increased by 163,000 in July. That’s a big, big, improvement compared with a figure of just 64,000 in June — 100,000 more jobs in July.” Investors appear to be pleased with the report. CNBC’s Hampton Pearson reports the numbers look good for some important economic industries and services. “Job growth: plus 49,000 professional and business services, plus 29,000 for food services, plus 25,000 manufacturing, and 12,000 additional jobs added to the healthcare sector.” Despite a substantial increase in hirings since June, and the July numbers being the best overall since February — the unemployment rate still increased. The New York Times explains. “The pace at which the economy has been adding jobs [the] last few months is just barely fast enough to absorb the growth in the labor force. As a result, the unemployment rate ticked up, to 8.3 percent, from 8.2 percent.” But a writer for Forbes notes the job gains put at least some worries about the economy to rest. “It makes more stimulus by the Federal Reserve less likely. The Fed earlier this week said it was poised to act if the economic data deteriorated further. July’s rebound will probably delay any action.” Job creation is also a crucial issue in the upcoming presidential election. The Wall Street Journal reports the latest numbers have some significance for the two parties’ campaigns. “Republicans and Democrats are likely to seize on Friday's numbers—they offer the strongest hiring as well as the highest unemployment rate since February... Republican challenger Mitt Romney has repeatedly criticized President Obama's handling of the economy and says that if he is elected his policies will help jump-start the recovery and create jobs." The July numbers could help President Obama’s chances at re-election. But the Associated Press notes no president has faced re-election with an unemployment rate of over 8 percent since World War II.