Last month, only 157,00 jobs were added by the United States to the economy. It is considered as its slowest pace of hiring within four months undershooting the expectations of analysts that amounted to 193,000.
However, the non-farm payroll that was recorded last June has been changed to rise to 248,000 from the original 213,000. The data that was recorded last May was also better than what was previously thought.
The dollar plunged by 0.08 percent against the euro regarding the news.
The Bureau of Labor Statistics of the United States reported that the rate of unemployment edged down by 0.1 percent to 3.9 per cent last July, while the average hourly earnings rose by 2.7 percent or 71 cents which was considered to be in line with analyst expectations.
Retail and manufacturing jobs continue to dominate, with the companies in those sectors hiring nearly twice as many people at this time during the previous year.
The vice president at Charles Schwab, Kully Samra, stated: “Job growth significantly missed market expectations, but the wider numbers still paint a robust picture of the domestic labour market. Wage growth is steady month on month and unemployment remains near its 18 year low.”
Samra added: “The labour market remains fairly tight but risks to the economy remain. Trade isn’t the only cause for concern—investors are also eyeing the rising value of the dollar, slowing global economic growth and the possibility that the Federal Reserve could raise short-term interest rates too much and choke off domestic economic growth.”
He continued: “However, US companies have strong balance sheets and tax reform has made it attractive to repatriate even more of their cash from foreign countries. That money can fuel business investment, expansion and stock buybacks.”
The employers had added an average of 224,000 new workers during the first six months of 2018, a faster pace as compared to the figures in 2017.