US Economy Adds 114,000 Jobs in July

The U.S. labor market showed signs of weakening in July, with only 114,000 jobs added, significantly below the 175,000 expected by economists. The unemployment rate rose to 4.3%, the highest since October 2021, marking the fourth consecutive monthly increase. Average hourly wages grew by 3.6% year-over-year, the smallest gain since May 2021, further suggesting a cooling labor market. Factors such as Hurricane Beryl and sustained high interest rates from the Federal Reserve may have contributed to the slowdown. Financial markets reacted negatively, with significant drops in major stock indices. The new data has intensified calls for the Fed to cut interest rates in September to preempt a potential recession.