The U.S. unemployment rate has risen to 4.3%, triggering a recession warning
The US unemployment rate rose to 4.3% in July, with job growth slowing down. This may intensify concerns about a deteriorating job market and economic recession. Hurricane Belial destroyed power in Texas, which may be one of the reasons for the lower-than-expected increase in employment numbers. Average hourly wage growth also slowed down, with a wage increase of 3.6%, slightly lower than the previous month. The unemployment rate has risen for the fourth consecutive month, exacerbating concerns about the sustainability of economic expansion. This may set the stage for the Federal Reserve to cut interest rates in September
US job growth slowed more than expected in July, adding only 114,000 jobs, pushing the unemployment rate up to 4.3%, which could exacerbate concerns about a deteriorating job market and potentially lead the economy into a recession.
During the employment survey period, Hurricane Beryl destroyed power in Texas and devastated parts of Louisiana, which may be one of the reasons for the lower-than-expected increase in employment numbers.
Average hourly earnings, after growing by 0.3% in June, increased by 0.2% last month. Over the 12 months ending in July, wages grew by 3.6%. This is the smallest year-over-year increase since May 2021, compared to 3.8% in June.
The employment report sets the stage for the Fed to cut rates in September. With the unemployment rate rising for the fourth consecutive month, concerns about the sustainability of economic expansion may intensify.
