United States: Job gains disappoint in July
Total non-farm payrolls grew by 114,000 in July, down from June’s downwardly revised 179,000 and undershooting market expectations. Moreover, the unemployment rate rose to 4.3% in July from 4.1% in June, the highest rate since late 2021.
All in all, the latest figures suggest that the labor market cooled in Q2 and again at the outset of Q3.
Digging into the data, Nomura analysts said:
“Beyond the headline miss in job gains and the unemployment rate, the household survey indicated a rise in job losses, typically a warning sign for a pending downturn. An unusual rise in temporary layoffs and evidence of a negative weather effect raise the possibility that the rise in job losses is just a blip, rather than the start of a worsening trend.”