According to the July Jobs Report released this morning, the US economy created 187,000 new jobs for the month, slightly below the Dow Jones estimate for 200,000. Though the headline number was a miss, it actually represented a modest gain from the downwardly revised 185,000 for June.
The unemployment rate fell to 3.5% in July, against a consensus estimate that the jobless level would hold steady at 3.6%.
Job gains in July were the least since December 2020. Over the last year, job gains have now averaged 312,000 per month.
Average hourly earnings, a key figure as the Federal Reserve fights inflation, rose 0.4% for the month, good for a 4.4% annual pace.
Another important figure, the labor force participation rate held at 62.6%, the fifth-straight month at that level. The rate for those in the 25-to-64 “prime” age group edged lower to 83.4%.
Stocks rallied following the news, with the Dow Jones Industrial Average up 200 points in early trading. Treasury yields fell sharply.
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