In July, U.S. job growth significantly slowed, with nonfarm payrolls increasing by only 114,000—below the Dow Jones estimate of 185,000 and a decrease from June’s revised 179,000.

The unemployment rate rose to 4.3%, its highest since October 2021. Average hourly earnings increased by 0.2% for the month and 3.6% year-over-year, both below expectations.

Stock market futures fell and Treasury yields dropped following the report. Despite previous strength in the labor market, July’s job increase was well below the 12-month average of 215,000.

Health care led job creation with 55,000 new positions, while the information services sector lost 20,000 jobs, CNBC has reported.

The household survey showed a 67,000 increase in jobs but a 352,000 rise in unemployment, with the participation rate at 62.7%.

Written by B.C. Begley