The Bureau of Labor Statistics also revised May and June totals downward by a combined 258,000, deepening worries about labor market strength
The US job growth in July missed expectations, signaling potential labor market trouble. Nonfarm payrolls rose by just 73,000, far below the forecasted 100,000.
The unemployment rate edged up to 4.2%. The Bureau of Labor Statistics also revised May and June totals downward by a combined 258,000, deepening worries about labor market strength.
Health care led gains with 55,000 new jobs, followed by social assistance with 18,000. These two sectors accounted for 94% of July’s total growth.
Meanwhile, federal jobs dropped by 12,000, and professional and business services lost 14,000. Broader unemployment, including discouraged and underemployed workers, jumped to 7.9%.
Wages rose 0.3% monthly, with a 3.9% annual increase. Long-term unemployment also worsened—1.82 million Americans have been out of work for over 27 weeks.
Following the weak report, markets tumbled and Treasury yields fell.
Traders now see a 75.5% chance of a Federal Reserve rate cut in September, up from 40% a day earlier, raising pressure on Federal Reserve Chair Jerome Powell.