US jobs rise more than expected in July - Economist

The US Bureau of Labor Statistics reported Friday, August 5th, that employment in July was much better than expected, contradicting signs that the economic recovery is losing steam.

Nonfarm payrolls rose by 528K in the month and the unemployment rate was 3.5%, missing expectations of 258K and 3.6%, respectively.

Wage growth also picked up, with average hourly earnings jumping 0.5% for the month and 5.2% from the same period last year.

Markets initially reacted negatively to the report, with Dow Jones futures dropping more than 120 points.

Leisure and hospitality led the way in achieving job gains with 96 thousand jobs, followed by professional and commercial services with 89 thousand.

Healthcare added 70,000 and government salaries increased by 57,000.