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Weekly Earnings

Real (adjusted for inflation) average weekly earnings decreased 3.6% from July 2021 to July 2022. During this period, real average hourly earnings decreased 3.0%.The change in real average hourly earnings, combined with a 0.6% decrease in the average workweek, resulted in the 3.6% decrease in real average weekly earnings since July 2021. The Consumer Price Index for all Urban Consumers increased 8.5% over the year.

Nonfarm Employment Ticks Up

Total nonfarm payroll employment rose by 528,000 in July 2022, larger than the average monthly gain over the prior four months (+388,000). Job growth was widespread, led by gains in leisure and hospitality, professional and business services, and health care. Leisure and hospitality added 96,000 jobs, as growth continued in food services and drinking places (+74,000). However, employment in leisure and hospitality is below its February 2020 level by 1.2 million, or 7.1%. Employment in professional and business services continued to grow, with an increase of 89,000 in July. Employment in health care rose by 70,000. Employment in construction increased by 32,000.

Source: U.S. Bureau of Labor Statistics

TRANSPORTATION EMPLOYMENT SAME AS PRE-PANDEMIC LEVEL

The unemployment rate in the U.S. transportation sector was 4.2% (not seasonally adjusted) in July, according to the U.S. Bureau of Labor Statistics. The July 2022 rate fell 3.1 percentage points from 7.3% in July 2021 and was the same as the pre-pandemic July level of 4.2% in July 2019. Unemployment in the transportation sector reached its highest level during the COVID-19 pandemic (15.7%) in May 2020 and July 2020. Unemployment in the transportation sector was above overall unemployment.

Employment Population Ratio

The employment – population ratio – the proportion of the population that is employed—was 60% in July 2022 for people ages 16 and older. The ratio was little changed over the month but was 1.6 percentage points higher than in July 2021 (58.4%) and 8.7 percentage points higher than in April 2020 (51.3%), when the ratio reached the low point early in the COVID-19 pandemic. The July 2022 ratio remains below its value just before the pandemic in February 2020 (61.2%).

Source: U.S. Bureau of Labor Statistics