WASHINGTON (MarketWatch) — The U.S. generated 255,000 new jobs in July, furnishing fresh proof that companies are still hiring plenty of workers even though the economy is operating at a lower speed.
The second straight large gain in hiring largely puts to rest any doubts about the health of the economy after unusually weak employment gains in May that at first raised alarms about the seven-year-old U.S. recovery.
The much stronger than expected increase in new jobs also raises the odds that the Federal Reserve might raise interest rates as early as September. The central bank held off after job creation appeared to slow in May.
Employment gains blew past Wall Street expectations. Economists polled by MarketWatch had forecast a 185,000 increase.
The unemployment rate, meanwhile, was unchanged 4.9%. More than 400,000 people joined the labor force in search of work in July, a sign they think more jobs are available. Job openings remain near a record high.
The resilience of the labor market was reflected in wages and how many hours people work each week. Hourly pay rose 0.3% to $25.69, keeping the 12-month increase in wages at a postrecession high of 2.6%.
The average workweek rose 0.1 hour to 34.5 hours, just a tick below an eight-year high.
Every major industry hired in July except for energy companies, which have shed jobs for more than a year because of lower oil prices.
Business and professional firms led the way, adding 70,000 jobs. Heath care providers hired 43,000 new workers and restaurants and hotels beefed up staff by 45,000.
Employment gains for June and May, meanwhile, were revised up by a combined 18,000. The government said 292,000 new jobs were created in June instead of 287,000. May’s gain was raised to 24,000 from 11,000.
