Labor Market Reports Unemployment Rate of 4.3%

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The unemployment rate rose to 4.3% in July, the highest since October 2021, leading to concerns over the economy, stock market losses, and plunging Treasury yields.Friday that outlined lower-than-expected job growth and sparked concerns over the future of the economy. The summary showed nonfarm payrolls grew by only 114,000, which is roughly 62% lower than the Dow Jones estimate for the month..

The Labor Department reported Friday that employers added 114,000 jobs in July, missing the 175,000 gain forecast by LSEG economists. The unemployment rate also unexpectedly inched higher to 4.3% against expectations that it would hold steady at 4.1%.The US labor market cooled off far more than expected last month, underscoring concerns that the economy has slowed down too quickly and could lead to a recession.

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