U.S. payrolls swelled and the unemployment rate retreated in July with hiring in the leisure and hospitality and education sectors accounting for more than half the job gains.

Nonfarm payrolls increased 943,000 and the jobless rate declined a half point to 5.4 percent, the U.S. Bureau of Labor Statistics reported.

Estimated payroll gains for June and May were revised upward a total of 119,000 to 938,000 and 614,000, respectively.

Payrolls have grown 16.7 million since April 2020, but remain down 5.7 million from the pre-pandemic level in February 2020.

For July, 8.7 million people were counted among those unsuccessfully looking for work. Of those, 3.4 million have been out of work 27 weeks or longer. 

Another 4.5 million people were counted among those working part-time because their hours were reduced or they were unable to find full-time positions.

The labor participation rate rose a tenth of a point to 61.7 percent, still 1.6 points lower than February 2020.

Employment increased 380,000 in the leisure and hospitality sector, 253,000 of that in food services and drinking places. Still employment in the sector remains 1.7 million below its February 2020 level.

Payrolls rose 221,000 in local government education and 40,000 in private education.

Employment also increased 60,000 in professional and business services, 50,000 in transportation and warehousing, 37,000 in health care and 27,000 in manufacturing.

The average workweek remained unchanged at 34.8 hours. The manufacturing workweek lengthened two-tenths of an hour to 40.5 hours. Average hourly earnings increased another 11 cents to $30.54, the fourth consecutive month for gains.