Many analysts had expected for unemployment to stay steady for the month of July but were pleasantly surprised once the numbers were actually released on Friday morning. The report showed that unemployment dipped one-tenth of a point from 9.2% in June to 9.1% in July, with an addition of 117,000 jobs. The news comes off the heels of last month’s negative outlook on an already bleak economy where only 85,000 jobs (+27% compared to last month) were added and brought the unemployment rate up to 9.2%.
“The headline surprise, compounded by upward revisions and an unexpected drop in the unemployment rate help to diffuse some of the severe pessimism over the outlook for the U.S. economy that has set in over the past two weeks,” a Bank of New York Mellon analyst explained.
The July unemployment numbers helped slow concerns that the United States may slide back into another recession, at least for a while on Wall Street Friday. The Dow Jones Industrial was up at least 150 points after trading began on Friday upon the good jobs report and then dipped 400 points because of fears that the debt crisis in Europe might fragile the U.S. economy. The numbers then would keep alternating up and down for the rest of the day until it ended up 60.93 at 11,444.61, up 0.54%