The variety of workers rose by 943,000 in July because the unemployment charge fell to five.4%

The hiring jumped in July despite fears about the Delta variant of Covid-19 and as companies struggled with a labor shortage, the fastest in nearly a year, the Labor Department reported on Friday.

Non-farm payrolls rose 943,000 for the month, while the unemployment rate fell to 5.4%, according to the department’s Bureau of Labor Statistics. The raise was the best since August 2020.

Economists polled by Dow Jones were looking for 845,000 new jobs and a headline unemployment rate of 5.7%.

Average hourly wages also rose faster than expected, rising 0.4% over the month and 4% over the same period last year.

The decline in the overall unemployment rate looked even more pronounced when you consider that the employment rate rose to 61.7%, its highest level since the pandemic broke out in March 2020. A separate calculation that takes discouraged workers and part-time workers into account fell even further to 9.2% from 9.8% in June for economic reasons.

As in previous months, the Leisure and Hospitality Industry led to job creation adding 380,000 jobs for the month, including 253,000 in bars and restaurants. The sector was hit the hardest during the pandemic but posted steady gains during the economic reopening.

Education also saw strong growth with 261,000 new hires this month. However, the BLS warned that the pandemic skewed the sector’s numbers and likely increased the number for July.

Professional and business services added 60,000 for the month, and transportation and warehousing added 50,000. Other services (39,000), healthcare (37,000), manufacturing (27,000), information (24,000), finance (22,000) and mining (7,000) also grew. Retail posted a loss of 6,000 while construction and wholesale were unchanged.

The numbers come amid an onslaught of new coronavirus cases in the U.S. and around the world, with the most serious diseases occurring in areas with larger unvaccinated populations. The surge has raised fears that it could slow economic activity in a recovery that began in April 2020 and has shown resilience despite the periodic flare-up of Covid cases.

At the same time, the US is waging an ongoing battle against labor shortages.

Recruitment site Indeed estimated there were 9.8 million job openings as of July 16, far more than the 8.7 million considered unemployed. However, a survey of 5,000 jobseekers saw a decline in the number of citing health concerns as a reason for not looking, with an increasing number citing a lack of need due to a financial cushion as the top response.

The unemployment rate has fallen from the pandemic high of 14.8%, but remains well above the 3.5% before the crisis. Federal Reserve politicians have vowed to maintain ultra-loose monetary policies until they see stronger signs of full employment, despite Democratic Senator Joe Manchin on Thursday criticizing the central bank, saying it is risking galloping inflation as it searches for jobs.

This is the latest news. Please check back here for updates.

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