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Job Growth Totals 114,000 in July, Much Less Than Expected as Unemployment Rate Rises to 4.3%
The U.S. job market saw a significant slowdown in July, with only 114,000 jobs added, far below the expected 250,000. This unexpected drop has led to a rise in the unemployment rate to 4.3%, up from 4.2% in June.
The labor market has been experiencing a steady decline in job growth over the past few months. This latest figure is a stark contrast to the 372,000 jobs added in June. The slowdown is attributed to a combination of factors, including the ongoing economic uncertainty and the impact of rising interest rates.
The service sector, which includes industries such as healthcare and leisure, saw the largest decline in job growth. The manufacturing sector also experienced a significant drop, with a loss of 13,000 jobs. On the other hand, the construction sector added 32,000 jobs, a slight increase from the previous month.
The unemployment rate, which has been steadily declining since the pandemic, saw a notable increase. This rise is largely due to an increase in the number of people actively looking for work. The labor force participation rate, which measures the percentage of the population actively working or looking for work, rose to 62.6%, up from 62.4% in June.
The average hourly earnings for all employees increased by 0.3% in July, bringing the year-over-year growth to 4.7%. This increase is slightly lower than the 5.2% growth seen in June.
The slowdown in job growth and the rise in unemployment have raised concerns about the overall health of the economy. The Federal Reserve has been closely monitoring the labor market as it considers further interest rate hikes to combat inflation.
Original Article: https://www.cnbc.com/2024/08/02/job-growth-totals-114000-in-july-much-less-than-expected-as-unemployment-rate-rises-to-4point3percent.html
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