U.S. labor market chugs on with 164,000 jobs added in July

Under the graphic paste -> Data: Bureau of Labor Statistics; Chart: Axios Visuals

The U.S. economy added 164,000 jobs in July — right in line with economists' expectations of 165,000 jobs— the Labor Department said on Friday, while the unemployment rate held steady at 3.7%.

Why it matters: The labor market is still the standout of the record long economic expansion, although cracks are beginning to show. The pace of job growth is slowing down, as the government revised its previous predictions to show that the market had added 41,000 fewer jobs than initially estimated over the last two months.

Private sector job growth rebounds in July

The private sector added 156,000 jobs in July, more than the 150,000 economists expected and an improvement from the June figures which were revised slightly higher, according to a closely watched report by ADP and Moody's Analytics.

Why it matters: The ADP report is seen as an indicator of what could come from the government's official jobs release on Friday. Mark Zandi, chief economist at Moody's Analytics noted in a call with reporters that job growth in the private sector remains healthy, but is "throttling back" from the outsized job gains we've seen in previous months — particularly among small businesses.