U.S. adds 157,000 jobs in July; unemployment rate at 3.9%

WASHINGTON — Nonfarm payroll employment increased by 157,000 jobs in July 2018, according to the latest figures from the Bureau of Labor Statistics.

The unemployment rate nosed down 0.1 percentage points from June, to 3.9 percent, the BLS said in its latest report issued Aug. 3.

Manufacturing added 37,000 jobs in July, with most of the gains in durable goods, according to the report. Transportation equipment had the largest gains in that sector, with 13,000 new jobs, followed by machinery with 6,000 jobs.

Professional/business services gained 51,000 jobs, with temporary help services adding 28,000 jobs and computer systems design 8,000 jobs, according to the BLS.

Health care and social assistance grew by 34,000 jobs, and food services and drinking places by 26,000 jobs, the report said. Construction gained 19,000 jobs, but retail trade only 7,000. Mining, wholesale trade, transportation and warehousing, information and financial activities remained mostly flat, the BLS said.

The BLS figures contrast with those of payroll services firm ADP Inc., whose employment report issued Aug. 1 stated that U.S. private sector employment increased by 219,000 jobs in July.

Medium-sized businesses (50 to 499 employees) enjoyed the biggest increase with 119,000 jobs, according to ADP. Small businesses (one to 49 employees) grew by 52,000 jobs, while large businesses (500 employees or more) gained 48,000 jobs.

Goods-producing sectors added 42,000 jobs, including 23,000 in manufacturing and 17,000 in construction, ADP said. Service-providing sectors grew by 177,000 jobs, with health care/social assistance gaining the most with 49,000 jobs.

While business associations celebrated the job reports, they also noted that employment problems remain in the U.S.

"While some firms faced adjustment issues with the tariffs, most factories are thriving," Scott Paul, president of the American Alliance for Manufacturing, said. "'Help Wanted' is still the most prevalent signage you'll see in an industrial park.

"We should use the leverage we've gained to get a better deal for American workers," Mr. Paul said. "That means a permanent fix to global steel overcapacity, additional pressure on China to stop its anticompetitive practices, and a modernized NAFTA that is better for the working class in all three nations."

The National Federation of Independent Business (NFIB), citing its Monthly Jobs Report for July, said a tight labor market remains the biggest problem small businesses face.

Thirty-seven percent of responding small business owners said they had job openings they could not fill, the highest number since the Monthly Jobs Report began, the NFIB said Aug. 2.

"Small business owners are continuing to show that they're looking to hire and willing to pay more to hire the right employees," NFIB Chief Economist William C. Dunkelberg said.

Carolyn Lee, executive director of the National Association of Manufacturers' Manufacturing Institute, said tax reform and regulatory relief were paying off for U.S. workers.

But, as with small businesses, manufacturers are having trouble filling job openings, she said.

"While this increased employment is undoubtedly good news, job growth exacerbates the monumental manufacturing workforce shortage," she said.

There are 441,000 unfilled manufacturing jobs, and this could grow to 2 million by 2025, Ms. Lee said, creating an urgent need to increase workers' skills for the technology-driven jobs of the future.

"Congress and the administration have taken important steps in recent weeks to tackle this challenge, but this jobs report is a reminder that more work needs to be done through partnerships with the private sector to solve the workforce crisis," she said.