U.S. Job Growth Slows to 73,000 in July as Unemployment Hits 4.2%
The U.S. jobs market showed significant slowdown in growth over the last three months, impacting Federal Reserve rate cut discussions.
- Nonfarm payrolls increased by 73,000 in July, up from a revised 14,000 in June (originally reported as 147,000).
- July's job growth fell short of forecasts which were at 110,000.
- The unemployment rate rose to 4.2%, matching expectations but up from 4.1% in June.
- May’s originally reported growth of 144,000 was revised down to just 19,000.
- Average job growth for May-July was about 35,000 per month, the lowest since early 2020.
After the report, the price of bitcoin rose to $115,800. The bond and dollar markets reacted strongly: the 10-year Treasury yield dropped by 10 basis points to 4.30%, while the dollar fell nearly 1% against the euro and yen.
The Federal Reserve maintained its benchmark rate at 4.25-4.50% earlier this week. However, Chairman Jerome Powell's comments raised doubts about potential rate cuts in September, reducing the odds of a cut from 75% to around 40%, before rising back to 55% after the jobs data.
This report may complicate Powell's position, especially with some Fed governors advocating for lower rates.