Source: Sharecast
Nonfarm payrolls rose by 73,000 in July, following June's downwardly revised reading and well below expectations of 110,000. Healthcare added 55,000 jobs, ed by ambulatory services and hospitals, while social assistance employment continued to trend higher, up 18,000 month-on-month amid continued job growth in individual and family services. Federal payrolls, however, declined again, dropping by 12,000, down from its January peak of 84,000 to extend a multi-month downtrend.
The unemployment rate held steady at 4.1%, with little change in participation or employment-population ratios, while average hourly earnings rose 0.3% to $36.44, with annual wage growth now running at 3.9%.
Revisions to May and June's figures also pointed to a significantly weaker picture than previously reported, with May's job growth slashed by 125,000 to just 19,000, while June was cut by 133,000 to 14,000 — leaving employment 258,000 lower than initially thought and likely reinforcing the Federal Reserve's view that it should remain cautious for the time being when it comes to monetary policy, with signs of labour market softening emerging beneath headline stability.
Reporting by Iain Gilbert at Sharecast.com
