U.S. Job Growth in July Falls Short of Expectations, but Economy Remains Resilient
U.S. job growth in July fell short of expectations, indicating a slower pace in the economy, but not a recession, according to the Labor Department’s report. Nonfarm payrolls increased by 187,000 jobs, slightly below the estimated 200,000. However, it was a modest improvement from the revised 185,000 jobs added in June.
The unemployment rate dropped to 3.5%, surpassing expectations of it remaining steady at 3.6% and reaching its lowest level since late 1969. Average hourly earnings rose by 0.4% for the month, with a 4.4% annual pace, both higher than anticipated.
The labor force participation rate remained unchanged at 62.6%, and the unemployment rate for the 25-to-64 age group decreased slightly to 83.4%. A broader unemployment rate, which includes discouraged workers and those with part-time jobs for economic reasons, declined to 6.7%.
Healthcare led job creation in July, adding 63,000 jobs, with other sectors like social assistance, financial activities, and wholesale trade also contributing. The leisure and hospitality sector, which had been a leading contributor during the pandemic recovery, only added 17,000 jobs, reflecting a slowing trend.
Despite the slower job gains, the economy has remained resilient, with positive growth driven by consumer spending and the services sector rebounding from pandemic disruptions.