WASHINGTON D. C. –  U. S. employers added a weak 114,000 jobs as hiring slowed sharply last month in the face of high interest rates.  “Friday’s Labor Department report showed a drop from the 179,000 jobs created in June. Forecasters had expected to see 175,000 jobs in July. The unemployment rate rose to 4.3%.”

The June jobs report was stronger than expected but came with blemishes.  The Labor Department revisions diminished April and May payrolls by 111,000.  This means that monthly job growth was just a mere 177,000 from April through June.  The lowest three-month average since January of 2021.

The unemployment rate rose to 4.1% in June, despite the fact that America’s employers added 206,000 jobs. U.S. job openings also fell slightly last month. Add that to elevated layoffs and the Fed could be poised to cut interest rates next month, as most analysts expect.

Looser labor conditions, or fewer open jobs per job seeker, could translate into faster increases in unemployment in the coming months, analysts have warned.

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