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Job growth in the US exceeded economists' expectations in July, signaling the labor market's recovery was mostly unscathed as COVID cases rebounded.
The July increase serves as the seventh straight month of job additions and leaves 8.7 million Americans still unemployed. The unemployment rate dipped to 5.4% from 5.9%, also beating the median estimate of 5.7%. Wage growth exceeded expectations once again, with average hourly earnings climbing 11 cents to $30.54. The uptick in wages — particularly in the hardest-hit service sectors — signals businesses paid more upfront to counter the labor shortage.
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