U.S. is now at peak employment bringing wage growth
The U.S. labor market may have reached a new peak this year with wage growth soon to follow.
The employers in the country added 528,000 jobs last month.
It was double as compared Wall Street estimates and reflected the labor market fully recovered from pandemic job losses.
The unemployment rate ticked down to 3.5%, according to the Bureau of Labor Statistics.
"What you have right now is effectively peak employment," ZipRecruiter CEO Ian Siegal told Yahoo Finance.
"It is extremely difficult for employers to find people who have the right skills for their open jobs. And a lot of them rather than continuing to recruit are basically trying to do more with the people that they already have." He added.
As a result it has propelled wage growth. Average hourly earnings climbed by 5.2% in July from a year earlier, and the annual wage gains exceeded 5% each month this year, the Labor Department said.