The U.S. added 187,000 jobs to its economy in July, which was less than expected

Job growth in July was less than expected, pointing to slower growth in the U.S. economy, the Labor Department reported Friday.

The Labor Department announced Friday that job growth was lower than expected in July, which indicates a slower economic growth in the United States.

Nonfarm payrolls increased by 187,000 in the month of July, which was slightly less than the Dow Jones estimate of 200,000. Although the headline number was disappointing, it represented a modest increase from the downwardly-revised 185,000 for June.

Unemployment was estimated to be 3.6%, but the actual rate was 3.5%. The unemployment rate is slightly above the lowest since late 1969.

The Federal Reserve is fighting inflation with a key statistic, the average hourly earnings. This figure rose by 0.4% in the last month. That’s a rate of 4.4% on an annual basis. Both figures were above the estimates of 0.3% and 4,2%.

The labor force participation rate, which is also important, remained at 62.6% for the fifth consecutive month. The unemployment rate, which includes discouraged workers as well as those who hold part-time jobs due to economic reasons, fell by 0.2 percentage points from June. The household survey, which is used in calculating the unemployment rate showed a stronger gain of 268,000.

The health care industry added 63,000 new jobs in the last month. Social assistance (24,000), finance activities (19,000) and wholesale trade (18,000) were also contributors. Other services contributed 20,000 of the total. This included 11,000 personal and laundry service.

The leisure and hospitality sector, which was a leader in the recovery during the Covid pandemic, has added only 17,000 jobs. This is consistent with a trend of slowing growth after an average of 67,000 new jobs per month in the first quarter of 2023.

The totals for previous months were revised downward — June’s count was reduced to 185,000 (a 24,000-down revision), while May’s estimate was reduced to 281,000 (a 25,000-down reduction).

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