The U.S. economy created more jobs than expected in July as food workers returned in droves and helped the broader leisure and hospitality sectors create more than half a million jobs.
The Department of Labor reported Friday that the number of employees rose 1.763 million in July, up from the estimate of 1.48 million expected by economists polled by Dow Jones. The unemployment rate fell to 10.2%, also better than the forecast of 10.6%.
CNBC examined the net changes in industry for July jobs based on the data included in the employment report.
Leisure and hospitality showed the strongest recruitment figures. A stream of recruitment in the food service industry was almost entirely responsible for the number of blowout jobs in the industry as the chefs, waiters and bartenders were re-occupied with restaurants.
The hospitality and drinking sub-sector alone posted 504,000 net income, helping the sector grow by 592,000 over the month. Other amusement, gambling and recreational jobs have created 99,600 jobs.
James Knightley, ING's chief international economist, said the US service sector is showing some of the strongest resilience.
"The details show that the service sector grew the most, with leisure / hospitality increasing by 592,000, commerce and transport increasing by 291,000, retail by 258,000 and business services by 170,000," he wrote. "Despite these impressive increases, we must remember that the workforce is still 12.88 (million) less than it was in February. There is still a mountain to climb."
Government and retail also saw far greater-than-normal job gains as state and local positions filled and brick and mortar stores reopened as coronavirus closures lifted across the country. In these two sectors 301,000 and 258,000 jobs were created.
"July saw notable increases in employment in the leisure and hospitality, government, retail, professional and business services, other services and healthcare sectors," the Labor Department said in a press release. "These improvements in the labor market reflected the continued resumption of economic activity that had been curbed as a result of the coronavirus (COVID-19) pandemic and efforts to contain it."
The healthcare subsector added 126,000 jobs, with employment growth increasing in dental offices (+45,000), hospitals (+27,000), medical practices (+26,000) and home health services (+16,000). Healthcare employment has declined by 797,000 since February.
The broader health and social care sector added 191,000 jobs.
Manufacturing, a key priority for President Donald Trump, has created a modest 26,000 jobs.