Hiring surged in July, with employers adding 528,000 jobs

Hiring surged in July, with U.S. employers creating 528,000 jobs last month, the Labor Department said Friday. That far exceeded economist expectations for gains of 250,000 new jobs during the period. It was also a jump from the previous month, when businesses added 372,000 jobs despite the highest inflation in 40 years. 

The unemployment rate ticked down to 3.5% from 3.6% in June, marking the lowest since February 2020, just before the COVID-19 pandemic erupted in the U.S. Before the latest payrolls report, the economy was adding roughly 450,000 jobs per month.

Both total nonfarm employment and the jobless rate have returned to their pre-pandemic levels.

The employment numbers underscore the resilience of the economy following two straight quarters of declining GDP, which is considered a hallmark of a recession. Despite this shrinking economic growth, hiring has remained robust as businesses continue to add jobs and hold onto their current workers amid strong consumer demand.