Job Growth in July Slows

Job growth in the United States was lower in July than expected, indicating a slowdown in the economy. Nonfarm payrolls increased by 187,000 jobs, slightly below the estimated 200,000. However, the unemployment rate was 3.5%, lower than the expected 3.6% and above the lowest level since 1969. Average hourly earnings rose 0.4% for the month, with a 4.4% annual pace, both higher than estimates. Healthcare led job creation, and sectors like social assistance, financial activities, and wholesale trade also contributed. However, leisure and hospitality, a strong sector during the Covid pandemic recovery, only added 17,000 jobs, indicating a slowing trend. Despite the slower job gains, the U.S. economy has shown resilience against various challenges, including interest rate hikes by the Federal Reserve to combat inflation. GDP gains have averaged 2.2% for the first half of 2023, and the third quarter is projected to have a 3.9% gain.