A job fair in Memphis, Tennessee this
month. The unemployment rate remained unchanged in July at 8.3%.
Photograph: Mike Maple/Zuma Press/Corbis
The US added 163,000 new jobs in July, ahead of economists' expectations and offering some relief for President Barack Obama as the economy emerges as the key battleground of the 2012 election.
Private companies added 172,000 jobs last month, while governments shed 9,000 positions. Most economists had expected the latest nonfarm payroll figure to be around 95,000. The US added just 64,000 jobs in June.
While the number was far better than expected it was not enough to bring down the unemployment rate, which edged up to 8.3%. That number is derived from a separate survey and economists said it tends to be volatile but the rise was immediately seized upon by Obama's opponents.
Republican presidential candidate Mitt Romney called the figures "a hammer blow to struggling middle-class families".
"President Obama doesn't have a plan and believes that the private sector is 'doing fine'. Obviously, that is not the case. We've now gone 42 consecutive months with the unemployment rate above 8%. Middle-class Americans deserve better, and I believe America can do better," he said in a statement.
The labor department said that since the beginning of this year, employment growth has averaged 151,000 per month, about the same as the average monthly gain of 153,000 in 2011.
The labor market has slowed sharply after strong gains of over 200,000 a month in the winter, spelling trouble for Obama ahead of the November 6 election.
Gus Faucher, senior economist at PNC Financial Services, had forecast a rise of 125,000 ahead of the labor department's release and said he was pleasantly surprised by the news. "This is the best month for the private sector since February. There were big gains in manufacturing, which is always good to see, and in leisure and hospitality."
Faucher said the slight rise in unemployment was disappointing but said the household survey, from which the number is derived, was volatile. "One month's figure doesn't tell us much but it is something we will have to watch," he said.
US stock markets soared on the news. The Dow Jones Industrial Average climbed 227 points to 13,109 in mid-morning trading, its highest level since early May.
Despite the good news on numbers, the headline unemployment rate presents Obama with a problem. "Two years after Obama admin said 'Welcome to the recovery,' unemployment still above 8%," Republican house speaker John Boehner said via Twitter. "This month's jobs numbers underscore the failure of the Obama Administration's policies," tweeted Eric Cantor, Republican leader.
A recent Ipsos/Thomson Reuters poll showed Republican presidential candidate Mitt Romney ahead of President Barack Obama on the economy with 36% of registered voters believing he has a better plan compared to 31% who had faith in Obama's policies.
The closely watched employment report comes two days after the Federal Reserve said the economy had "decelerated somewhat" over the first half of the year sent and signaled it would step in if the faltering recovery does not pick up.
Weak job growth in recent months has been compounded with other signs that the US recovery is faltering.
The commerce department said earlier this month that growth in US gross domestic product (GDP) had slowed to 1.5% in the second quarter, down from 2% in the prior three months, and 4.1% in the fourth quarter of 2011.
Private companies added 172,000 jobs last month, while governments shed 9,000 positions. Most economists had expected the latest nonfarm payroll figure to be around 95,000. The US added just 64,000 jobs in June.
While the number was far better than expected it was not enough to bring down the unemployment rate, which edged up to 8.3%. That number is derived from a separate survey and economists said it tends to be volatile but the rise was immediately seized upon by Obama's opponents.
Republican presidential candidate Mitt Romney called the figures "a hammer blow to struggling middle-class families".
"President Obama doesn't have a plan and believes that the private sector is 'doing fine'. Obviously, that is not the case. We've now gone 42 consecutive months with the unemployment rate above 8%. Middle-class Americans deserve better, and I believe America can do better," he said in a statement.
The labor department said that since the beginning of this year, employment growth has averaged 151,000 per month, about the same as the average monthly gain of 153,000 in 2011.
The labor market has slowed sharply after strong gains of over 200,000 a month in the winter, spelling trouble for Obama ahead of the November 6 election.
Gus Faucher, senior economist at PNC Financial Services, had forecast a rise of 125,000 ahead of the labor department's release and said he was pleasantly surprised by the news. "This is the best month for the private sector since February. There were big gains in manufacturing, which is always good to see, and in leisure and hospitality."
Faucher said the slight rise in unemployment was disappointing but said the household survey, from which the number is derived, was volatile. "One month's figure doesn't tell us much but it is something we will have to watch," he said.
US stock markets soared on the news. The Dow Jones Industrial Average climbed 227 points to 13,109 in mid-morning trading, its highest level since early May.
Despite the good news on numbers, the headline unemployment rate presents Obama with a problem. "Two years after Obama admin said 'Welcome to the recovery,' unemployment still above 8%," Republican house speaker John Boehner said via Twitter. "This month's jobs numbers underscore the failure of the Obama Administration's policies," tweeted Eric Cantor, Republican leader.
A recent Ipsos/Thomson Reuters poll showed Republican presidential candidate Mitt Romney ahead of President Barack Obama on the economy with 36% of registered voters believing he has a better plan compared to 31% who had faith in Obama's policies.
The closely watched employment report comes two days after the Federal Reserve said the economy had "decelerated somewhat" over the first half of the year sent and signaled it would step in if the faltering recovery does not pick up.
Weak job growth in recent months has been compounded with other signs that the US recovery is faltering.
The commerce department said earlier this month that growth in US gross domestic product (GDP) had slowed to 1.5% in the second quarter, down from 2% in the prior three months, and 4.1% in the fourth quarter of 2011.
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