US job growth slows sharply in July; unemployment rate steady at 4.2%

The household survey revealed little change across major demographic groups. Long-term unemployment rose by 179,000 to reach 1.8 million, now comprising 24.9 per cent of the total unemployed. New entrants to the labour market increased by 275,000.

The labour force participation rate stood at 62.2 per cent. Manufacturing employment was essentially flat in July.

Health care led job gains, adding 55,000 positions—surpassing its 12-month average. Within the sector, ambulatory services and hospitals contributed most. Social assistance added 18,000 jobs, particularly in family and individual services. Conversely, federal government employment declined by 12,000 in July and has dropped by 84,000 since January.

Most other sectors, including construction, retail, transportation, and financial services, showed little or no employment change.

Average hourly earnings rose by 0.3 per cent in July to $36.44, bringing the year-on-year increase to 3.9 per cent. The average workweek edged up to 34.3 hours.

Significant revisions to previous months’ data show that May’s job growth was revised down by 125,000 to just 19,000, while June’s figure was lowered by 133,000 to 14,000—making combined employment for those months 258,000 lower than previously reported.

ALCHEMPro News Desk (SG)