US adds 187,000 jobs, lowest since 2020
Aug 04, 2023
Washington DC [US], August 4 : The United States listed over 185,000 jobs in July as the hiring cooled down to its lowest level but the unemployment rate dipped, New York Post reported.
Last month, US employers added 187,000 jobs after the hiring cooled down to its lowest in nearly three years.
Notably, the job list is the lowest number since COVID peaked in 2020, the Labor Department said Friday.
The unemployment rate dipped to 3.5 per cent in a sign that the job market remains resilient.
It seems that July was not the right month for job seekers as it also witnessed a slight decrease from the 209,000 jobs added to the US economy in June and a sharper drop from the robust 339,000 jobs that were gained in May, according to New York Post.
The figures mark the slowest increase since December 2020, though the US is currently enjoying a 30-month streak of monthly job gains.
The cooling job report came after the United States Federal Reserve raised its benchmark interest rate by 25 basis points, the highest in the past 22 years.
The benchmark federal funds rate now lies at a range of 5.25 per cent to 5.5 per cent, the highest since 2001, further restricting economic activity as the borrowing costs for homes, cars and other items march higher.
It also came after nearly 18 months of interest rate hikes — part of the Federal Reserve’s aggressive tightening cycle to bring inflation back down to its pre-pandemic level of 2 per cent, as per the New York Post.
Employment in healthcare added 63,000 jobs last month, increasing the most.
Jobs in construction, financial activities and wholesale trade also trended positively, the report showed.
Fed officials have warned that strong hiring can often fuel inflation if companies feel compelled to raise pay to attract and keep workers.
Thus, a slowdown in job growth and pay raises could help the Fed reach its 2 per cent inflation target, New York Post reported.
