The overall headline from the latest jobs report from the U.S. Department of Labor is a positive one according to Guy Williams President, CEO of Gulf Coast Bank and Trust. Williams said employment numbers are up as well as consumption and production.
July’s jobs report showed the U.S. added 528,000. Williams said that figure is welcomed news for the overall economy, but if you’re living paycheck to paycheck, then there’s a harsh reality that’s emerging. On the Newell Normand Show this week, Williams broke down some points of concern he found within the report.
Williams said the report showed the labor participation rate was down compared to pre-pandemic numbers. More specifically, Williams found the slight drop in men working to be significant because it was the first time in several months that has occurred. Williams said historically, men have participated in the labor force at a higher clip than women.
Labor participation among women had dipped during the pandemic when daycare for children became more of a priority as remote learning took hold, but Williams said that is now rebounding but economists are seeing a trend where fewer men are working. Williams said what’s more telling is the kind of jobs that people are seeking. Williams told Newell that July’s report indicated more Americans are working part-time jobs which is an indicator of inflation’s impact.
“One thing that’s happening is as inflation bites, people are looking at that second job in order to pay the bills. The unfortunate reality is because wage growth hasn’t kept up with cost, the average worker is about 3.4% worse off now than they were a year ago,” Williams said.