Job Growth: Nonfarm payrolls grew by 114,000 in July, lower than expected and below the revised 179,000 in June ¹. This is also lower than the average of 215,000 over the past 12 months .
Unemployment Rate: The unemployment rate rose to 4.3%, its highest since October 2021 ¹. This marks the fourth straight monthly increase, rising from a five-decade low of 3.4% in April 2023 .
Sector Performance: Healthcare led job creation, adding 55,000 to payrolls, followed by construction (25,000), government (17,000), and transportation and warehousing (14,000) ¹. Leisure and hospitality added 23,000 jobs, while the information services sector posted a loss of 20,000 .
Average Hourly Earnings: Average hourly earnings increased 0.2% for the month and 3.6% from a year ago, below forecasts for 0.3% and 3.7% .
Market Impact: The report triggered a sell-off on Wall Street, with stock market futures adding to losses and Treasury yields plunging ¹. The Federal Reserve may consider an interest rate cut in September, with markets pricing in a rate cut of at least a quarter percentage point .