U.S. economy adds 187,000 jobs in July
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The labor market added 187,000 jobs in July and the unemployment rate edged down to 3.5% from 3.6%, the government said on Friday.
Why it matters: The numbers show employers still have healthy — though cooling — demand for workers, the latest sign of a resilient economy.
Details: Economists expected a gain of 200,000 jobs in July.
- The data shows the labor market added roughly the same number of jobs as June, when a downwardly revised 185,000 jobs were added.
- The economy added 281,000 jobs in May, which was revised down by 25,000.
Between the lines: The health care, social assistance and financial activities sectors had the largest job gains last month.
- The labor force participation rate, which represents the share of Americans working or looking for work, was 62.6% — largely unchanged for the fifth consecutive month.
- Average hourly earnings, a gauge of wage growth, rose by 0.4% in July. Over the past 12 months, average hourly earnings are up 4.4%.
The big picture: The data comes as U.S. Federal Reserve policymakers consider whether to continue interest rate increases next month.
- The Fed has hiked rates at a historically aggressive pace for more than a year, with those increases intended to slow the economy and inflation.
- But so far, the labor market and broader economy has shown surprising resilience alongside cooling inflation — a combination that has surprised some economists.
Go deeper: Job turnover data show a slow, painless labor market correction
Editor's note: This story was updated with a new chart.
