Aug. 2 (UPI) — The U.S. economy created 114,000 jobs in July, well off Wall Street predictions while revised total in May and June paints worse pictures of the country’s hiring, according to the Labor Department in its official report on Friday.
The unemployment rate edged up to 4.3%, its highest total since the pandemic era, possibly giving the Federal Reserve its clearest reason yet to seriously consider cutting interest rates.
Employment was boosted by continued brisk hiring in healthcare, construction and transportation and warehousing, the report said. Those numbers were partly offset by job losses in the information sector.
Dow Jones economists had predicted that the economy would create 185,000 jobs in July. Job gains had been averaging about 203,000 per month over the first six months of the year. The unemployment rate, though, has increased with more workers re-entering the workforce.
The report said the job gains in May were revised down 2,000 to 216,000 and in June’s job numbers were also revised down by 27,000 to 179,000.
“With these revisions, employment in May and June combined is 29,000 lower than previously reported,” the Labor Department said, noting the updates were made based on additional reports from businesses and agencies since the original publications.
The report said home healthcare services added 22,000 jobs, while hospitals hired 20,000 and the nursing and residential care facilities made up 9,000 positions. Construction gained 25,000, which roughly matched its monthly average. Specialty trade contractors added 19,000 jobs last month.
Transit and ground transportation loss 11,000 in July, but the Labor Department said the sector still has a total gain over the past 12 months.