The Labor Department revealed that job growth slowed in July as employers added 73,000 jobs and the unemployment rate ticked up slightly, both signs of potential trouble for the U.S. labor market.
The number of jobs added was well below the meager Dow Jones estimate of 100,000 new jobs. At the same time, unemployment inched north to 4.2% from 4.1% in June, which was in line with Wall Street expectations.
In addition, the Labor Department revised the previously stated job totals for May and June. Revisions showed employers added 258,000 fewer jobs in May and June than expected.
The report contributes to an already complicated picture of the economy. America’s unemployment rate is inching up, but still at near-historic lows. President Trump’s tariff threats have somewhat raised prices, but haven’t translated into the widespread inflation that was predicted. Consumer confidence seems to be on the rise.
However, younger consumers seem to be pulling back on discretionary spending.
The weak jobs report, including the dramatic revisions, may push the Federal Reserve to lower interest rates when it next meets in September. During a meeting earlier this week, the Fed opted to leave rates unchanged despite a dissent from two of its board members.
Mr. Trump has repeatedly pushed the Fed to lower rates, but Fed Chairman Jerome Powell has remained steadfast in his refusal to reduce rates. However, some analysts expect the Fed to lower rates at its September meeting.
Job gains came primarily in the health care sector, which has continued to show strength in the post-COVID era. Roughly 55,000 jobs were added in the health care sector, leading the way across all industries.
The federal government continued to shed jobs, down 12,000 for the month and 84,000 since January, before tech billionaire Elon Musk and the Department of Government Efficiency began slashing government jobs.
On wages, average hourly earnings increased by 0.3%, which matched estimates. However, the yearly gain of 3.9% was slightly higher than expected.
• Jeff Mordock can be reached at jmordock@washingtontimes.com.