Employers created 164,000 jobs in July, according to hiring and employment figures released by the U.S. Department of Labor at 8:30 a.m. ET Friday. Economists polled by the Wall Street Journal had expected a gain of about 165,000.
According to the report, notable job additions occurred in technical and professional services, financial, health care, and social assistance activities. The three-month average for job addition stood at 140,000, compared with 237,000 in the same period last year.
The unemployment rate remained unchanged at 3.7% last month, the same as in June. Economists had predicted that July unemployment rate would drop to 3.6%.
Meanwhile, average hourly earnings rose by 0.3%, bringing year-over-year gain to 3.2%. Average hourly earnings were expected to have increased by 0.2% in July.
The pace of job creation has softened in 2019 as the U.S. government continues escalating its trade war with China. Some analysts, however, believe that the slowdown is most likely because of a shortage of workers with the right job skills. Nonetheless, overall economic growth and consumer spending remain decent, but not great.
On Wednesday, Federal Reserve policy makers cut benchmark interest rate by a quarter-point to about 2.25% for the first time since the 2008 financial crisis. Fed chairman Jay Powell said during news conference that the aim of the rate cut is to neutralize the risks from global economic slowdown and the trade spat between the U.S. and China.
President Donald Trump tweeted Thursday that he would impose import tariffs on $300 billion worth of Chinese goods starting Sept. 1, because his administration and China haven’t yet been able to strike a much sought-after trade agreement.
Economists and key U.S. industries warn that a protracted trade war with Beijing is likely to stifle domestic economic growth, push up prices for American consumers, and hit employment.
