Unemployment declined slightly to 3.9 percent from 4 percent in June, while average hourly wages increased by 7 cents to $27.05.
Year over year, however, wages have increased only 2.7 percent, according to the Bureau of Labor Statistics. The PayScale Index, which tracks the change in wages for employed U.S. workers, shows that real wages – the buying power of workers’ pay with inflation taken into account – have declined 9.3 percent since 2006.
“People keep wondering when that magical kink will occur and wages will turn on a dime,” said Ellen Zentner, chief United States economist at Morgan Stanley, speaking with The New York Times. Her prediction? Not yet. Labor shortages are “not economywide,” she said.
Where Jobs Are Growing
A few industries were responsible for most job gains last month. Professional and business services added 51,000 jobs, while healthcare added 34,000 jobs and food services and drinking places tallied 26,000 jobs. On the goods-producing side, manufacturing added 37,000 jobs and construction added 19,000 jobs.
Other industries were little changed for the month, including mining, wholesale trade, transportation and warehousing, information, financial activities and government.
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