financetom
Economy
financetom
/
Economy
/
Job Creation Tumbles in July, Higher Unemployment Strengthens Case For Interest Rate Cuts: Is The Fed Slow On The Draw?
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Job Creation Tumbles in July, Higher Unemployment Strengthens Case For Interest Rate Cuts: Is The Fed Slow On The Draw?
Aug 2, 2024 6:01 AM

The pace of job creation slowed in July, signaling cooling labor market conditions and strengthening the case for imminent interest rate cuts as early as next month.

The U.S. economy added 114,000 jobs last month, down from the revised figure of 179,000 jobs in June, according to official data released Friday.

July Employment Situation: Key Highlights

Nonfarm payrolls came in at 150,000 last month, a slowdown of 63,000 from June, and well below the economist consensus estimate of 175,000 according to TradingEconomics.

The unemployment rate rose from 4.1% to 4.3%, contrary to expectations of it remaining unchanged.

Wage growth showed further signs of cooling, with average hourly earnings rising by 0.2% month-over-month, down from 0.3% in June and slightly below expectations.

On an annual basis, average hourly earnings were 3.6% higher compared to June 2023, down from 3.9% in June and below expectations of 3.7%.

July 2024ConsensusJune 2024
Nonfarm payrolls 114,000 175,000 179,000
(downwardly revised from 206,000)
Unemployment rate 4.3% 4.1% 4%
Average hourly earnings (m/m) 0.2% 0.3% 0.3%
Average hourly earnings (y/y) 3.6% 3.7% 3.9%

Market Reactions

Treasury yields dropped sharply on Friday as investors turned to safe-haven assets in response to escalating economic and geopolitical risks.

The U.S. dollar index (DXY), as tracked by the Invesco DB USD Index Bullish Fund ETF , tumbled 0.7%.

Futures on U.S. indices traded sharply in the red, reflecting rising risk aversion in equity markets. Contracts on the S&P 500 Index were 1.6% lower at 8:35 a.m. in New York, while those on the Nasdaq 100 were 2.3% lower.

On Thursday, tech stocks, as monitored through the Invesco QQQ Trust tumbled 2.6%. The SPDR S&P 500 ETF Trust ( SPY ) fell 1.4%.

Read Now:

Wall Street Analyst Predicts End To Tech Rout: ‘Much Of The Selloff May Be In The Rearview Mirror’

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Factbox-US government shutdown: How it affects key economic data publishing
Factbox-US government shutdown: How it affects key economic data publishing
Oct 13, 2025
(Reuters) -The U.S. government shut down much of its operations on October 1 after Republicans and Democrats failed to reach an agreement to extend funding past the end of the federal fiscal year on September 30. The closure has shut off the flow of key economic data at a moment of uncertainty among policymakers and investors about the health of...
US Treasury chief says government shutdown is hitting economy
US Treasury chief says government shutdown is hitting economy
Oct 13, 2025
WASHINGTON (Reuters) -The U.S. federal government shutdown is starting to impact the nation's economy, U.S. Treasury Secretary Scott Bessent said on Monday as the closure entered its 13th day. This is getting serious. It's starting to affect the real economy, he told Fox Business Network's Mornings with Maria program, without offering more detail. Bessent added that in order to allow...
Factbox-US government shutdown: How it affects key economic data publishing
Factbox-US government shutdown: How it affects key economic data publishing
Oct 13, 2025
(Reuters) -The U.S. government shut down much of its operations on October 1 after Republicans and Democrats failed to reach an agreement to extend funding past the end of the federal fiscal year on September 30. The closure has shut off the flow of key economic data at a moment of uncertainty among policymakers and investors about the health of...
Fed's Paulson sees more rate cuts ahead to bolster job market
Fed's Paulson sees more rate cuts ahead to bolster job market
Oct 13, 2025
(Reuters) -In her first speech as head of the Philadelphia Federal Reserve, Anna Paulson said on Monday that rising risks to the job market argue for more interest rate cuts by the U.S. central bank, as trade tariffs are unlikely to push up inflation as much as expected. Given my views on tariffs and inflation, monetary policy should be focused...
Copyright 2023-2026 - www.financetom.com All Rights Reserved