- U.S. Employers Added Just 114,000 Jobs in July; Unemployment Rose to 4.3%
- New JOLTS Report Also Portrays Slowing Labor Market
- City of Atlanta’s HR Head Fired for Nepotism, Retaliation
- New Mexico Company Fined $165,000 for Retaliation
U.S. Employers Added Just 114,000 Jobs in July; Unemployment Rose to 4.3%
The U.S. unemployment rate rose to 4.3% in July, and nonfarm payroll employment edged up by 114,000, far below expectations, according to a data report released August 2 by the Department of Labor’s Bureau of Labor Statistics (BLS). Economists had expected the U.S. to add 175,000 jobs and keep the jobless rate steady at 4.1%, according to consensus estimates.
Over the prior 12 months, the average monthly jobs gain was 215,000. Revised data in the August 2 report showed the U.S. added 179,000 jobs in June and 216,000 in May.
According to the BLS, the number of unemployed people increased in July by 352,000 to 7.2 million. These measures are higher than a year earlier, when the jobless rate was 3.5% and the number of unemployed people was 5.9 million.
Among the major worker groups, the unemployment rates for adult men (4.0%) and Whites (3.8%) increased. The jobless rates for adult women (3.8%), teenagers (12.4%), Blacks (6.3%), Asians (3.7%) and Hispanics (5.3%) showed little or no change over the month.
Among the unemployed, the number of people on temporary layoff increased by 249,000 to 1.1 million. The number of permanent job losers changed little at 1.7 million.
Among industry sectors, employment continued to trend up during the month in health care (+55,000), construction (+25,000), and transportation and warehousing (+14,000), while information lost jobs (-20,000).
Average hourly earnings for all employees on private nonfarm payrolls increased by 8 cents, or 0.2 percent, to $35.07. Over the past 12 months, average hourly earnings have increased by 3.6%. In July, average hourly earnings of private-sector production and nonsupervisory employees increased by 9 cents, or 0.3%, to $30.14.
New JOLTS Report Also Portrays Slowing Labor Market
American employers and workers are holding back on hiring and quitting, according to data from the latest Job Openings and Labor Turnover Survey (JOLTS) report, released July 30 by the BLS.
The report showed the number of job openings in the U.S. was unchanged at 8.2 million on the last business day of June. That figure matches the revised BLS figure for May.
In June, both the number of hires and total separations were little changed at 5.3 million and 5.1 million, respectively. However, those figures are slightly below the revised May estimates of 5.7 million hires and 5.4 million separations. Within separations, quits (3.3 million) as well as layoffs and discharges (1.5 million) changed little. The revised May figure for quits was 3.4 million.
Looking deeper at the report:
- Job openings: As of the last business day of June, the number of job openings was down by 941,000 over the year. The job openings rate held at 4.9% in June. Job openings increased in accommodation and food services (+120,000) and in state and local government, excluding education (+94,000). Decreases were seen in durable goods manufacturing (-88,000) and federal government (-62,000).
- Hires: The number of hires is down by 554,000 over the year. The hires rate, at 3.4%, changed little in June.
- Separations: Total separations include quits, layoffs and discharges, and other separations. Total separations are down by 544,000 over the year. The total separations rate was little changed at 3.2% in June. Total separations decreased in state and local government education (-51,000) and in arts, entertainment and recreation (-39,000). … Quits are down by 434,000 over the year. The quits rate was unchanged at 2.1% in June. Quits decreased in construction (-64,000) and in state and local government education (-55,000). … The rate of layoffs and discharges dropped to 0.9% in June. Layoffs and discharges decreased in finance and insurance (-26,000). … The number of other separations changed little at 314,000.
- Employer size: For establishments with 1 to 9 employees, the job openings rate, hires rate and total separations rate changed little. For establishments with 5,000 or more employees, the layoffs and discharges rate decreased, while the job openings rate and total separations rate changed little. The hires rate was unchanged.
City of Atlanta’s HR Head Fired for Nepotism, Retaliation
The City of Atlanta fired its head of HR recently after an investigation into preferential treatment and retaliation surrounding the employment of that leader’s daughter, the Atlanta Journal-Constitution reported.
Tarlesha Smith, who was appointed by Mayor Andre Dickens in 2022, was under investigation by the city’s law department after the Office of Inspector General released a report in May accusing her of misconduct.
The report alleged Smith created a compliance analyst position within the Office of the City Solicitor. Before the position (with a nearly $52,000 annual salary) was publicly advertised, Smith’s daughter, Bridget, was hired — despite never interviewing for the role.
The investigation further found Tarlesha Smith retaliated against a supervisor who raised concerns about the daughter’s hiring, qualifications and work ethic.
The HR leader, who was on administrative leave during the probe, was fired “effectively immediately,” according to a July 25 letter sent to city council members by chief operating officer LaChandra Burks.
New Mexico Company Fined $165,000 for Retaliation
A New Mexico-based millwork and cabinetry company will pay $165,000 and furnish other relief to settle a lawsuit for unlawful retaliation filed by the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced July 29.
According to the EEOC’s lawsuit, the general manager of Third Bench Holdings LLC complained that a company official discriminated against her based on what she believed to be her Hispanic national origin. The company’s HR director opened an investigation into the complaint, which included interviewing the employee’s husband, who also worked for Third Bench.
The EEOC lawsuit said that one day after the investigation began, the general manager was demoted and her husband fired. Shortly thereafter, the HR director reported concerns about retaliatory treatment by the same company official who was the subject of the complaints. After she reported to higher management, the HR director was fired.
Such alleged conduct violates Title VII of the Civil Rights Act of 1964, which prohibits employers from retaliating against employees for opposing unlawful behavior or participating in investigations or proceedings.
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