The July jobs report shows some weakness in the economy, with the U.S. adding 187,000 jobs, fewer than expected. However the employment rate did fall a bit to 3.5%. Acting Labor Secretary Julie Su tells Yahoo Finance Live the report "is an example of the steady, stable growth" that President Biden has been talking about. Su says the numbers "are not consistent with recession," and that the U.S. is "in a tight labor market in which workers have more power, that workers have the ability to demand better working conditions, to make changes to their jobs."

On Fitch's downgrade of U.S. debt, Su agrees with Treasury Secretary Janet Yellen, saying it "felt arbitrary. It feels out of step with what we are seeing in the economy."

Su also weighed in on the ongoing strikes in Hollywood. Using the UPS-Teamsters negotiations and the West Cost ports talks as an example, Su says "parties coming together to solve their issues will result in better working conditions, historic increases in wages, and other protections," adding that we will have to see how the discussions play out. Su says that, for now, the department is not intervening in the Hollywood talks. "Intervention is not always the right answer," Su said, adding that it depends on the situation and what the parties involved want.

Video Transcript

- That jobs report coming in a bit cooler than expectations, 187,000 jobs created on that top line. That is the second month in a row of slowing job growth. For more insight on this, joining me now is acting Labor Secretary, Julie Su. Secretary Su, it's great to see you. Thank you so much for joining me.

- Good to see you again.

- So we got a second month in a row of cooling job growth, though the job market hanging in despite the Fed's 11 rate hikes so far. Would you say that the strength of the job market is why the economy has remained so resilient and why we've been able to avoid recession so far?

- Yes. This is an example of the steady, stable growth that the President talked about over a year ago. That if we could adopt the right economic policies, focus on building an economy from the middle out and the bottom up instead of the top down, where we make sure that workers do well, that we leave no one behind, that we could not only recover from the pandemic at a record rate, which has happened but that we can transition to slow and steady growth, which this number reflects and brings the total of jobs created since the President came into office to just about 13.4 million jobs.

- We've really seen businesses hold on to workers even though there's been this fear of recession-- this talk that it could be coming. And I'm wondering, some of these employers have been scarred by the labor shortages seen during the pandemic-- certainly, we're seeing some still now-- if that's creating sort of a floor and keeping strength in that job market?

- Right. So these numbers are not consistent with recession. We've continued to see steady growth. It's also true that we are in a moment in a tight labor market in which workers have more power. Workers have the ability to demand better working conditions, to make changes to their jobs to-- and that has resulted in-- we see power at the bargaining table, but we also see real wages have increased for especially low and middle-income workers, which has helped this equitable economy that the President talks about.

- As far as how much longer this slow and steady growth can continue, I'm curious what you thought about that manufacturing number clocking in at negative 2,000 last month. How do you view that in terms of how it bodes for your outlook for the job market at large? Do you think it's a canary in the coal mine?

- No. I think it's important to take a step back at what's been happening in the economy. So the President, working with Congress, got some $2 trillion-some in investments in clean energy, including in manufacturing, in infrastructure, and we are just seeing the impacts of those investments on the ground. And we're going to continue to see more of them.

For example, one of the industries that did grow last month is in non-residential construction, which means that we're building things again. I was in Pittsburgh with the first lady a couple of weeks ago at an airport modernization. We're seeing things get done. Those are creating jobs in some sectors. And if we build factories, it will eventually lead to more of the manufacturing jobs that we want.

- And, Madam Secretary, I'm curious-- we saw Fitch downgrade the US's credit rating this week. Any impact that you foresee there potentially on the economy, on the job market? We haven't seen too much of a reaction in the markets, obviously--

- Right. We're not seeing that, and as Secretary Yellen said, that felt arbitrary. It feels out of step with what we're seeing in the economy. So we are happy to see that the continued growth as we're transitioning to a place in which we believe that there can be sustainable growth and building a strong economy, the same way the President talks about-- centering workers, where then employers do well, and America is stronger for it.

- The Screen Actors Guild has gone on strike. That strike seemed to start just after the survey period was taken last month. What impact do you see that potentially having going forward on future payroll numbers?

- So as this President has said and as we've seen examples of, the collective bargaining process is a way in which workers have power at the table and which industries, employers and workers coming together, can resolve issues that they face, and workers can exercise their rights, including that right to strike.

As you noted, those numbers will not be reflected in the numbers that we're looking at now. But overall, I think that it's still a continued sign of what a worker-centered economy looks like. As we saw with other outcomes, the Teamsters and UPS, the West Coast ports parties coming together to resolve their issues will result in better working conditions, historic increases in wages and other protections, and we're going to see how these play out in some of the other industries.

- Well, talking about playing out. Today, there's a meeting between the Hollywood writers and the Alliance of Motion Picture and Television Producers to try to end the strike for the writers side. What are you hearing on that front?

- I think whenever parties are at the table, it's a good thing. And again, we have seen when parties come together, even though it may take some time, even though it doesn't always look pretty, that the outcomes are good for workers and for industry. So we'll stay hopeful about parties coming back together. I think that's always a good thing.

But we also believe, as the President has said, that as the most pro-worker, pro-union administration in history, we are we're seeing the impacts of that-- of real bargaining power for unions.

- Are you prepared to intervene if you need to?

- I think we monitor all of the labor situations out there. But as we've seen, intervention is not always the right answer. It depends on what the parties want. It depends on a clear-eyed assessment of what is happening. And if the parties can come together and resolve their issues, we think that that's a win for everybody.

- So right now, no intervention.

- That's right.

- OK. So before we wrap up, I understand you've got a big regulatory agenda on tap for this month, and the Labor Department is set to unveil rules to expand overtime pay requirements for workers as well as narrow the definition of what it means to be an independent contractor versus an employee. What can you tell us about these upcoming rules?

- So our rule making agenda is meant to make sure that we are doing everything we can to protect working people across America, which, again, is good for employers. It creates a level playing field. And so we've seen-- we've done things to expand protections for construction workers, to make sure that mine workers are not subject to totally-preventable illness and disease.

And when it comes to overtime and misclassification, we also want to make sure that working people have a safe floor that they can rely on that provides a floor under which nobody should have to live and work.

- So what is the timing on these rules, and when can we expect them to be rolled out this month?

- Right, so all of the rules are on different timetables, but we are hard at work at the Labor Department to deliver for American workers and the American people.

- And we've got the UAW coming up in September. What are you doing on that front as far as that is concerned?

- Also, we're paying attention to what is going on, but the parties are at the table, they're doing what they need to do, and we remain hopeful that they're going to resolve their issues.

- Secretary Su, thank you so much, as always, for your insights. It's great to see you.

- So great to see you too. Thank you so much.

- Thank you so much.