It was the biggest job gain since August last year, when more than 1 million positions were added back, and more than the 870,000 economists had expected.
While the rampant growth is great news, the industry is still down 1.7 million jobs since February last year. The jobless rate fell to its lowest level since the pandemic started, declining across nearly all demographic groups counted in the survey.The labor force participation rate inched up to 61.7%, while the employment-population ratio increased to 58.4%. Both measures are still below their February 2020 level.
The pandemic recovery has been defined by a mismatch between businesses' demand for staff and workers' ability and willingness to go back out there amid childcare issues, virus fears and generous benefits.For the Federal Reserve, which has been touting that it needs to see more improvements in the labor market before adjusting its policies, the July jobs numbers are just what the doctor ordered.