US employers add 162K jobs, rate falls to 7.4 pct. - Local news, weather, sports Savannah | WSAV On Your Side

US employers add 162K jobs, rate falls to 7.4 pct.

Posted: Updated:
WASHINGTON -

U.S. employers added 162,000 jobs in July, the fewest since March. The gains were enough to lower the unemployment rate to a 4½ -year low of 7.4 percent, a good sign in an otherwise lackluster report.
    
The Labor Department said Friday that unemployment fell from 7.6 percent in June.
    
The economy added 26,000 fewer jobs in May and June than previously estimated. Americans worked fewer hours. And their pay dipped. The figures suggest weak economic growth may be making businesses cautious about hiring.
    
Reaction to the jobs report on financial markets was slightly negative. Stock index futures gave up early gains and were little changed shortly after the report came out. The yield on the benchmark 10-year Treasury note fell to 2.64 percent from 2.71 percent as investors bought U.S. government bonds.
    
The Federal Reserve will pay particularly close attention to the employment data as it decides whether to scale back its $85 billion monthly bond purchases later this year. Weaker hiring could make the Fed less likely to taper at its September meeting.
    
The government said employers added 176,000 jobs in May, below the 195,000 previously estimated. And job gains were 188,000 in June, down from the 195,000 reported last month. That slowed the three-month average to just 175,000 jobs a month. While that's enough to slowly lower the unemployment rate, it's below the more robust pace of 200,000 jobs a month logged since January.
    
The job gains were mostly in lower-paying industries, such as retail, hotels and restaurants. But some positions were added in better-paying areas. Manufacturing added 6,000 jobs, driven by strong gains at auto plants. Those were the first job gains at U.S. factories since February.  And professional services such as finance, accounting and information technology also increased.
    
Economic growth remains sluggish. The economy grew at a subpar 1.7 percent annual rate in April-June quarter, the government said Wednesday. While that was an improvement over the previous two quarters, it's still far too weak to rapidly lower unemployment.
    
Recent data suggest that the economy could strengthen in the second half of the year.
    
A survey Thursday showed that factories increased production and received a surge of new orders in July, propelling the fastest expansion in more than two years.
    
The survey, by the Institute for Supply Management, also showed that the housing recovery is spurring more output by lumber companies, furniture makers and appliance manufacturers.
    
Businesses have ordered more industrial machinery and other equipment for four straight months. Europe's troubled economies are showing signs of recovery, potentially a lift to U.S. exports.
    
U.S. automakers are reporting their best sales since the recession, a sign that Americans are confident enough in their finances to make large purchases. Car sales rose 14 percent in July from 12 months earlier to 1.3 million.
    
Healthy sales have encouraged more hiring by Ford Motor Co. The company said last week that it will hire 800 salaried professionals this year, mostly in areas such as information technology, product development and quality control.

  • Most Popular StoriesMost Popular StoriesMore>>

  • Statesboro Police looking for aggravated battery suspect

    Statesboro Police looking for aggravated battery suspect

    Thursday, August 28 2014 3:58 PM EDT2014-08-28 19:58:36 GMT
    Grant James SpencerGrant James Spencer
    Statesboro Police are searching for a suspect in the assault of a teen who was found unconscious outside a bar early Thursday morning. Authorities say they responded to Rude Rudy's just after midnight to find 18-year-old Michael Gatto non-responsive and with head injuries. Gatto was taken to East Georgia Regional Medical Center then flown to Memorial Medical Center where he remains in critical condition. Officer spoke to witnesses on the scene and issued an arrest warrant for 20-year-old Gran...
    Statesboro Police are searching for a suspect in the assault of a teen who was found unconscious outside a bar early Thursday morning. Authorities say they responded to Rude Rudy's just after midnight to find 18-year-old Michael Gatto non-responsive and with head injuries. Gatto was taken to East Georgia Regional Medical Center then flown to Memorial Medical Center where he remains in critical condition. Officer spoke to witnesses on the scene and issued an arrest warrant for 20-year-old Gran...
  • MUGS: 15 Children Removed From Woodruff Home, Adults Arrested

    MUGS: 15 Children Removed From Woodruff Home, Adults Arrested

    Wednesday, August 27 2014 6:16 PM EDT2014-08-27 22:16:58 GMT

    Investigators say they found the trailer surrounded by piles of clothes and trash, a swimming pool with green water, animal feces and roaches on the floor of the home and unsecured guns and medicine bottles.

    Investigators say they found the trailer surrounded by piles of clothes and trash, a swimming pool with green water, animal feces and roaches on the floor of the home and unsecured guns and medicine bottles.

  • 'Magic Mike,' Sequel to be Filmed in Savannah

    'Magic Mike,' Sequel to be Filmed in Savannah

    Wednesday, August 27 2014 12:52 PM EDT2014-08-27 16:52:15 GMT
    The Savannah Film Office says the sequel to the movie Magic Mike is scheduled to be filmed in the Savannah area beginning in September.
    The Savannah Film Office says the sequel to the movie Magic Mike is scheduled to be filmed in the Savannah area beginning in September.
Powered by WorldNow

1430 East Victory Drive
Savannah, GA 31404

Telephone: 912.651.0300
Fax: 912.651.0320
Email: newsemailalert@wsav.com

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.