163,000 Jobs Added in July; Unemployment Hits 8.3%

WASHINGTON, DC-The US economy added 163,000 jobs in July, an increase from the past few sluggish months, but not the benchmark that many economists would like to see the economy meet—that is, more than 200,000 jobs a month. The US Labor Department also reported that the unemployment rate rose to 8.3% from 8.2% the previous month.

Still, despite the disappointment that hiring is not matching levels seen at beginning of the year, July was the best month the economy has had this year since February. On average, the US economy has added about 151,000 jobs every month. “Today’s employment report was a nice upside surprise,” Scott Homa, Jones Lang LaSalle’s research director, tells GlobeSt.com. “Demand for commercial real estate is a clear derivative of employment growth, so the job gains should translate into healthy demand levels for space.” Although the unemployment nationally remains at elevated levels, he adds, certain national markets like Washington, DC and Boston continue to outperform the country, helping to reinforce the stability of these markets.

The Labor Department reported that employment rose in professional and business services, food services and drinking places, and manufacturing. Professional and business services increased by 49,000 and computer systems design added 7,000 jobs. In addition, temporary help services continued to trend up, adding 14,000 workers to the economy.

Employment in food services rose by 29,000 over the month and by 292,000 over the past 12 months. Manufacturing employment rose by 25,000, with nearly all of the increase in durable goods manufacturing. Employment continued to trend up in health care in July, at 12,000 positions added.