In the latest employment report, the U.S. economy added 187,000 jobs during July, as revealed by the Bureau of Labor Statistics. However, the overall unemployment rate remained largely unchanged, hovering at 3.5%.
While the job gains fell short of the average monthly increase of 312,000 over the past year, President Joe Biden highlighted the resilience of the economy, emphasizing that the unemployment rate has held below 4% for a year and a half. Biden also noted the recent growth of the economy and the decline in inflation.
Wage growth, standing at 4.4% annually, remains below core inflation, and the average workweek was slightly shortened. Concerns arise from the manufacturing sector, as experts suggest the outlook for employment in this industry is at its weakest point in three years, signaling potential job losses ahead.
While the data presents a mixed picture, it could influence the Federal Reserve’s stance on future rate hikes and monetary policies, particularly with the ongoing evaluation of inflation risks and economic conditions.