US beats estimates and creates 255k jobs

July’s surprisingly strong US nonfarm payrolls report, with employment rising by 255,000, also showed the low end of the labour force gained strength at a rapid pace.

“The strong increase in labour force participation and drop in unemployment for three proxies of low-end services employment —Hispanics, teens, and those with less than a high school diploma — suggest that this was the best month for cheap labour of this expansion,” said Conor Sen, a Bloomberg View contributor and portfolio manager at New River Investments.

Unemployment among Americans 25 or over with less than a high school diploma fell by 118,000, to a total of 669,000, the lowest level since records began in 1992.