Quick Take:
- U.S. job growth sputtered to 114,000 in July, missing the economic weather forecast by a mile.
- Unemployment nudged up to 4.3%, the highest peek since October 2021, flirting with recession warning bells.
Yello Paradisers! Could this be the warning sign we’ve feared? U.S. job growth has drastically underperformed, with only 114,000 new jobs in July, far below expectations.
July’s Jobs Jamboree Falls Flat
The U.S. labor market seemed to have hit the snooze button in July, with job growth not just slowing but practically crawling to 114,000. That’s a sharp drop from June’s already modest 179,000, and well shy of the 185,000 optimists were hoping for according to Dow Jones’ crystal ball. The unemployment rate, perhaps feeling a bit left out, decided to join the rise, ticking up to 4.3%, its loftiest level since the ghoulish days of October 2021.
Who’s Hiring, Who’s Not
The healthcare sector was the star of the show, adding a robust 55,000 jobs, proving yet again that health is not just wealth but also a job creator. Construction workers were also in demand, hammering away with an addition of 25,000 jobs. The government, not wanting to be left behind, chipped in with 17,000 jobs, while transportation and warehousing managed to deliver 14,000 new roles to the mix.
Paychecks Pinched
In the earnings corner, wallets weren’t fattening up as much as hoped. Average hourly earnings inched up by just 0.2% over the month and were up 3.6% on the year, both figures limping behind the forecasts.
The Bigger Picture
July’s job report might make some wonder if the U.S. economy is starting to feel the weight of its own uncertainties, or perhaps it’s just pacing itself for a marathon. Whatever the case, this report could be a sign for economists to buckle up, as the ride might get bumpier.
