Job growth eased from 179,000 jobs in June, according to a report released Friday by the Labor Department. Most economists polled by Reuters had forecast 175,000 jobs would be added in July, but employment grew by only 114,000.
The unemployment rate jumped to 4.3 percent in July from 4.1 percent in June. It was the fourth straight month of increases and the highest reading since October 2021.
The surge in July surpassed the threshold that historically indicates the United States is in a recession, but economists say that measure is unreliable in today's unpredictable post-pandemic economy.
Average hourly wages rose 3.6 percent from July 2023, the smallest year-over-year increase since May 2021 and another indication that the labor market is cooling.
Health care and social assistance companies added 64,000 jobs, accounting for the bulk of hiring last month. Restaurants, hotels and bars added nearly 26,000 jobs.
President Joe Biden, said in a statement, “Today's report shows that jobs are growing more gradually at a time when inflation has eased significantly.”
“Business investment remains strong, thanks in part to our invest in America agenda, which is creating good-paying jobs in disadvantaged communities. There is still much to do, but we are making progress in growing the economy from the middle class down,” Biden said. (es/pp)
Some information for this report was provided by The Associated Press and Reuters.
