US hiring cooler than expected in July, unemployment dips
United States was lower than anticipated in July, according to government data released Friday, hovering at the slowest pace since late 2020 in encouraging news for policymakers. The world's biggest economy added 187,000 jobs last month, slightly above the 185,000 figure in June after a downward revision, said the Department of Labor.
The jobless rate came in at 3.5 percent, a touch below June's 3.6 percent figure as well, and at a historically low level. The figures add to encouraging signs that the United States could bring down inflation without triggering a major recession following the central bank's aggressive interest rate hikes to ease demand.
In July, average hourly earnings rose 0.4 percent, the same pace as the month before, Labor Department data showed. Despite higher interest rates, consumer spending has remained resilient, in part supported by salary gains.
But analysts have warned that consumers — while still willing to spend — are becoming more cautious and selective. Overall, «job gains occurred in health care, social assistance, financial activities, and wholesale trade,» said the Labor Department report on Friday.
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