Did the Delta Variant Threaten US Job Growth in July?

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Read more : Delta variant fears weigh on mortgage rates

The unemployment rate, derived from the household survey, fell five basis points to 5.4% month over month. July’s unemployment rate was the lowest since the pandemic began in March, with household employment increasing by more than a million and the participation rate by 10 basis points to 61.7%.

“The increased turnout is also a welcome sign as it has taken time to return to its pre-pandemic level; turnout is still 1.6 percentage points lower than in February 2020, as many people are reluctant to return to the workforce for a variety of reasons, ”said Doug Duncan, chief economist at Fannie Mae. “In addition, there were 930,000 voluntary departures in July, and the number of people working part-time but who would prefer full-time work continued to decline, two positive signs of a continued upturn in employment. labor market. “

Average hourly earnings have increased by 4% per year, which may be another sign that employers are still struggling to attract workers for the record number of job openings they have.

Duncan noted that residential construction jobs increased by only 8,300 in July, down to 882,500 from 874,200 the previous month.


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