The worsening trade war between the U.S. and China has yet to impact the U.S.’s job market.
Total nonfarm payroll employment rose by 164,000 in July and the unemployment rate held close to historically low levels at 3.7 percent, the U.S. Bureau of Labor Statistics said Friday. This was close to Wall Street expectations.
Notable job gains occurred in professional and technical services, health care, social assistance and financial activities. In contrast, retail employment slipped by 3,600, but that could be a monthly blip. Within that, department stores shed 3,700 jobs and apparel and accessories stores lost 600.
“The 164,000 gain in nonfarm payrolls in July illustrates that, for all the concern over weak global growth and trade policy, the domestic economy is still holding up reasonably well,” said Andrew Hunter, senior U.S. economist at Capital Economics.
“President Donald Trump’s move to reescalate tensions with China has clearly increased the pressure on the Fed to deliver further policy-loosening, but the relative resilience of employment growth suggests that trade tensions alone won’t necessarily be enough to convince officials to cut rates again.”