U.S. businesses added 187,000 jobs in July, keeping pace with June's solid hiring as employers sought to add staff amid a tight labor market.
Hiring was slightly below the expectation from analysts polled by FactSet that employers had added 200,000 new jobs last month. The unemployment rate edged down to 3.5% from 3.6% in June, the Labor DepartmentEven so, job growth has become more muted than earlier this year, partly as the Federal Reserve has sharply boosted interest rates over the past year, making it costlier for businesses to expand.
"The U.S. jobs report was near expectations for July, but the labor market is softening as many employers navigate changing circumstances," said Eric Merlis, managing director and co-head of global markets at Citizens, in a Friday email. He added,"As the Fed works to curb inflation by raising rates to slow the economy, monthly jobs numbers provide a key measure of the impact and they continue to show the resilience of the economy."
July's data marks a slowdown from the average monthly hiring over the prior 12 months, when employers on average added 312,000 new positions each month, the Labor Department said. Businesses added jobs last month in health care, social assistance, financial activities and wholesale trade.