WASHINGTON, D.C. — The U.S. economy added 943,000 jobs in July and the unemployment rate dropped to 5.4 percent, the Bureau of Labor Statistics (BLS) reported Friday. Economists surveyed by Dow Jones had predicted there to be an increase of 845,000 jobs and an unemployment rate of 5.7 percent. It’s the biggest monthly jobs gain since August 2020 when about 1.6 million jobs were added. The upcoming end of federal unemployment benefits, which ends on Sept. 5, may be a factor for why more people are seeking and finding jobs now.
In June, the jobs added to the economy were revised up from 850,000 to 938,000. These numbers are much higher than the number of jobs added in May 2021, which was revised to 583,000 jobs. Nonfarm payroll employment has increased by 16.7 million since April 2020. Compared to before the pandemic in February 2020, the total employment numbers remain down by 5.7 million jobs.
This summer, more people have felt comfortable eating out and traveling, which explains why the highest job gains were in the leisure and hospitality sector. Jobs in the leisure and hospitality industry rose by 380,000. In food services and drinking places, there was a gain of 253,000, and in arts, entertainment and recreation, there was a gain of 53,000. Even though there has been considerable growth in the leisure and hospitality sector, the employment numbers are still down by 1.7 million, or 10.3 percent from what it was before the pandemic in February 2020.
Employment also increased in the education sector. Jobs in local government education rose by 221,000 and in private education by 40,000. Since February 2020, jobs in local government and private education have decreased by 205,000 and 207,000, respectively.
Professional and business services jobs increased by 60,000 in July, including 43,000 jobs in professional and technical services. Professional and business services jobs in July are 121,000 above pre-pandemic levels in February 2020.