August 5, 2005 8:30 AM, EDT

Payrolls Rise 207,000; Unemployment Rate Holds at 5%

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mployers added 207,000 workers to payrolls in July and the unemployment rate remained at 5%, the Labor Department said Friday.

The jobs gain exceeded analysts’ estimates of 180,000, Bloomberg reported. It followed a 166,000 June gain, more than previously reported, Labor said.

Because employment levels drive so much economic activity, an increase in employment can help consumer confidence and spending patterns, which affect trucking demand.

The July report suggested companies are gaining confidence as the economy picks up steam in the second half, Labor said.

Manufacturing employment fell by 4,000 jobs in July after falling by 21,000 in June. Construction employment continued to grow, with jobs rising by 7,000 in July. That followed a 15,000 rise in June.

Service-industry employment, which includes retailers, banks and government agencies, rose 203,000 in July after a gain of 168,000 in June, the department reported.