US economy adds 114,000 jobs last month, lower than market expectations

(MENAFN) In July, the US economy added 114,000 jobs, falling short of market expectations, which had anticipated an increase of 176,000 nonfarm payrolls. The Labor Department's figures also revealed a downward revision for June’s job gains, which were adjusted from 206,000 to 179,000. The unemployment rate rose to 4.3 percent in July, up from 4.1 percent in June, contrary to expectations that it would remain steady.

Despite the rise in unemployment, the number of unemployed individuals decreased to 5.9 million from 6.8 million in June. The labor force participation rate saw a slight increase to 62.7 percent, up from 62.6 percent in the previous month. However, the employment-population ratio fell slightly to 60.0 percent from 60.1 percent. Additionally, the number of people not in the labor force but seeking employment rose by 366,000 to 5.6 million, though these individuals were not considered unemployed as they were not actively seeking work or were unavailable to take a job.

Job growth in July was strongest in the health care sector, which saw an increase of 55,000 jobs, followed by construction with 25,000, and transportation and warehousing with 14,000. Average hourly earnings for private nonfarm payroll employees rose by 0.2 percent to USD35.07 per hour, reflecting a 3.6 percent increase from the previous year.

President Joe Biden highlighted the positive trend in job creation, stating that nearly 16 million jobs have been added since he and Vice President Kamala Harris assumed office in January 2021. He also noted that the average unemployment rate under his administration has been the lowest in 50 years.

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