Payrolls increased 528,000 in July as market returns to pre-pandemic levels

Hiring in July was better than expected as 528,000 new positions were added, the Bureau of Labor Statistics reported Friday.

Nonfarm payrolls rose 528,000 in the seventh month of the year and the unemployment rate was at 3.5%, breaking Dow Jones estimates of 258,000 and 3.6%, respectively.

According to the latest results the unemployment rate is back at pre-pandemic levels and at the lowest level, matching 1969 records.

Economists are still watching job creation as the Federal Reserve raises interest rates to control inflation running at its highest level in more than 40 years.

Wage growth also surged after jumping 0.5% for the month and 5.2% from the same time a year ago. The Dow Jones estimate was for a 0.3% monthly gain and 4.9% annual increase.

According to analysts the Bureau’s report showed that the labor market remains strong despite other signs of economic weakness.

“The report throws cold water on a significant cooling in labor demand, but it’s a good sign for the broader U.S. economy and workers,” Bank of America economist Michael Gapen said in a client note.

Still struggling to recover 1.2 million workers lost after the Covid pandemic, leisure and hospitality led July’s job gains with 96,000 new positions.