Actalent Labor Market and Economy Report: A Look at Trends in July 2024

Executive Summary

Job Growth

The U.S. economy added 114,000 jobs in July. Notable job gains occurred in healthcare (+55,000), construction (+25,000) and transportation and warehousing (+14,000), while information lost jobs (-20,000).

Other industries Actalent supports experienced the following job growth and loss last month: aerospace and defense (-1,400), architecture and engineering (+4,000), automotive (-1,300), manufacturing (+1,000), scientific research and development (-700), and utilities (-100).

Unemployment and Labor Force Participation

The unemployment rate increased from 4.1% in June to 4.3% in July, rising to the highest rate since October 2021 (4.5%). The labor force participation increased slightly from 62.6% in June to 62.7% in July.

Unemployment rates, specific to the industries Actalent supports, were as follows for July: hospitals (1.8%), utilities (2.1%), professional and technical services (3.2%), manufacturing (3.1%), and construction (3.7%). 

Among skilled labor categories Actalent sources talent for, unemployment in software-IT-mathematics was 3.1%; architecture and engineering was 1.4%; and sciences (life, physical and social) was 3%.

Inflation

The year-over-year inflation rate was 2.9% between July 2023 and July 2024 and declined for the fourth consecutive month. The Consumer Price Index is slowly declining toward the Federal Reserve’s 2% target.

Wage Growth

Average hourly earnings increased 3.6% between July 2023 and July 2024. “Real" average hourly earnings (wages adjusted for inflation) increased by 0.7% from July 2023 to July 2024. In other words, average hourly earnings are keeping up with inflation, although consumers may still be feeling the pressure of higher prices.