US Bureau of Labor Statistics monthly unemployment reports

July Jobs Report Shows Significant Slowdown with 114,000 Jobs Added, Unemployment Rises to 4.3%

Aug 2, 2024, 12:45 PM

The July jobs report reveals a significant slowdown in the US labor market, with only 114,000 jobs added, much lower than expected. The unemployment rate rose to 4.3%, up from 3.5% last July, marking the fourth consecutive month of increase. The number of unemployed Americans reached 7.2 million, with 1.5 million long-term unemployed. This has led to heightened expectations for the Federal Reserve to cut interest rates, potentially as soon as September. The market reacted negatively, with S&P 500 futures dropping. Analysts, including Marc Pinto from James Henderson Investors, suggest that the weaker-than-expected job growth and rising unemployment rate may prompt two rate cuts this year. The report also indicated a slowdown in wage growth, which is now at 0.2% monthly and 3.6% annually.