Softening labor market indicated by latest July employment data
In July 2022, the U.S. economy experienced a concentrated job growth, with the healthcare and social services sectors leading the way. These sectors continued their ongoing trends of expansion, primarily due to persistent demand for health care and individual and family services [1][3][4].
The healthcare sector added approximately 55,000 jobs, accounting for about 76% of the total job gains that month. This growth was significant, with hospitals and ambulatory health care services showing notable increases [1]. Social services also experienced steady growth, with approximately 18,000 jobs added, particularly in individual and family services [1].
These concentrations in job growth reflect sector-specific factors such as demographic trends (an aging population increasing the need for healthcare), ongoing public health needs, and increased demand for social support services [1]. These industries typically exhibit more stable and sustained job growth compared to other industries that are more sensitive to economic cycles.
Despite a slower overall job growth in July 2022 (with only 73,000 total jobs added), healthcare and social assistance remained strong contributors to employment gains amidst a cooling labor market [3][4][5].
Average hourly earnings for all employees on private nonfarm payrolls increased by 12 cents, or 0.3%, to $36.44 in July. Over the past 12 months, average hourly earnings have increased by 3.9% [2]. In the private sector, production and nonsupervisory employees saw an increase of 8 cents, or 0.3%, to $31.34 per hour in July [2].
Employment in various sectors showed little change in July. These included mining, quarrying, and oil and gas extraction, construction, manufacturing, wholesale trade, retail trade, transportation and warehousing, information, financial activities, professional and business services, leisure and hospitality, and other services [2]. The federal government experienced a decrease of 12,000 jobs in July [2].
Sources: [1] Bureau of Labor Statistics (BLS) [2] U.S. Department of Labor [3] The Wall Street Journal [4] The New York Times [5] CNBC
The healthcare sector, with its continued expansion, demonstrated a significant job growth in July 2022, adding approximately 55,000 jobs and accounted for about 76% of the total job gains. Despite a slower overall job growth, the social services sector also experienced steady growth, with approximately 18,000 jobs added, particularly in individual and family services. These sectors, recognized for their more stable and sustained growth compared to other industries, fall under the broader category of business and finance.
