The U.S. economy added a better-than-expected 163,000 jobs in July, a marked improvement from the revised figure of 64,000 in June and more than double the rate of job creation in the prior three months. The healthy job gains are encouraging, signaling that employers are adding to their payrolls despite broader macroeconomic uncertainty both in the U.S. and overseas. This is the good news from the new Talent Market Monthly report published by workforce solution provider Kelly Services.

Other highlights are:

- The U.S. labor market showed some signs of strength in July as hiring increased amid uncertain economic conditions both at home and overseas.
- The uptick in job creation was not enough to drive down unemployment, which remains at a frustratingly high level.
- Whether the economy can sustain the positive employment momentum is uncertain, as the outlook for the rest of 2012 is less than robust.

Much like the country’s economic conditions, employment gains have been volatile in 2012, slowing in the second quarter after posting solid growth in the first three months of the year. Current forecasts call for the U.S. economy to continue on a modest pace in the second half of the year, suggesting that the labor market may see some progress, but will likely stay in low gear.

You can download the full Talent Market Monthly Report here.