Job growth in the United States moderated in July, with nonfarm payrolls increasing by 73,000, according to data released Friday by the Bureau of Labor Statistics (BLS). The figure came in below market expectations, which had forecast a gain of 110,000.
June’s job growth was also revised sharply downward to 14,000 from the initially reported 147,000, pointing to a cooling labor market.
Other indicators in the report offered a mixed picture. The unemployment rate inched higher to 4.2% from 4.1% in June, in line with expectations. The labor force participation rate ticked down slightly to 62.2% from 62.3%, suggesting a modest retreat in workforce engagement.
The weaker job growth and downward revisions could complicate the Federal Reserve’s policy outlook, especially as tariffs begin to put upward pressure on prices.