July report shows hiring surge

The Labor Department released updated jobs numbers on Thursday showing the unemployment rate dropped to 5.4 percent last month while employers added 943,000 jobs. The gains surpassed economists’ projections. Hospitality and leisure industries contributed to the largest increase with 380,000 new hires. As unemployment benefit programs end, employers are raising wages up to $15 per hour for entry-level positions. Public school employment added 221,000 jobs in July, but the retail industry lost 5,500 jobs.

What does this mean for the economy? The Labor Department estimated that the nation lost more than 22 million jobs in March and April of 2020. As of the latest report, nearly 17 million have returned. The International Monetary Fund expects the U.S. gross domestic product to grow by 7 percent this year, but rising delta variant cases put office returns in jeopardy. The numbers were drawn from survey data compiled before widespread mask mandates returned.

Dig deeper: Listen to Sarah Schweinsberg’s report on hiring challenges employers have faced recently.