Job growth in the United States slowed much more than expected during July, and the unemployment rate ticked higher, fueling fears of a broader economic slowdown, the Labor Department reported Friday.
Nonfarm payrolls grew by just 114,000 for the month, down from the downwardly revised 179,000 in June and below the Dow Jones estimate for 185,000.
The unemployment rate jumped to a near three-year high of 4.3%, up from 4.1% in June. This marks the fourth consecutive monthly increase.
The July 2024 Jobs Report also showed the increase in annual wages last month was the smallest in more than three years, effectively sealing the case for the Federal Reserve Open Market Committee to cut interest rates in September.
From a sector standpoint, health care again led in job creation, adding 55,000 to payrolls. Other notable gainers included construction (25,000), government (17,000), and transportation and warehousing (14,000). Leisure and hospitality, another leading gainer over the past few years, added 23,000.
The information services sector posted a loss of 20,000.
The labor market had been a pillar of economic strength, but has recently shown some trouble signs, and the July 2024 Jobs Report adds fuel to the fier.
Stock market futures added to losses following the report, while Treasury yields plunged.
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