US companies created 187,000 new jobs in July, marking its lowest levels in nearly three years, according to a Labor Department’s report released on Friday.
As the Federal Reserve continues to consider whether it has done enough to snuff out inflation, last month nonfarm payrolls increased by 187,000, little shy of the 200,000 Dow Jones forecast. Even though the headline number was below expectations, the actual result is a slight improvement over the downwardly revised 185,000 for June.
The headline figure for July and the negative adjustments to the monthly employment totals for May and June (down 25,000 jobs and 24,000 jobs, respectively) are further signs that the labor market in the country is steadily slowing down. Additionally, it strengthens the argument that the Federal Reserve can control inflation with a “soft landing” and minimal job losses.
The largest increase in employment last month was 63,000 positions in the healthcare sector. The research revealed that employment in wholesale commerce, finance, and construction also trended well.
The Federal Reserve has been aggressively tightening monetary policy in an effort to reduce inflation to the pre-pandemic level of 2%, which has been reached despite the slowing jobs data that follows almost 18 months of rate increases.