Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Jobs growth in the US slows

Nikhil Kumar
Friday 02 August 2013 20:13 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Employers across the US hired fewer than expected people last month, according to new figures that showed a slow, if steady, recovery in the labour market that is likely to factor heavily in the Federal Reserve's calculations as it considers rolling back its stimulus measures.

The Labor Department said payrolls in the world's largest economy expanded by 162,000 over July, fewer than the 183,000 news jobs anticipated by analysts. Although the growth was slower than forecast, the unemployment rate, drawn from a separate survey, fell to 7.4 per cent from 7.6 per cent, its lowest since December 2008.

The lacklustre growth highlighted the continued impact of what is still a wounded economy that is recovering only slowly. The pressure of government spending cuts was apparent in the figures, which showed that public payrolls had declined.

Worryingly for an economy dependent on consumer spending, the report showed Ameri-cans are earning less money: average hourly earnings fell 2 cents to $23.98 and the average workweek also fell.

In addition to publishing figures for July, the Labour Department revised its estimates of job growth over May and June, saying 26,000 fewer jobs had been created.

The figures come as the Fed considers when and how to begin reducing the size of its $85bn (£56bn) per month bond buying programme.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in