United States jobless rate drops to 3.9%. in July; 157000 new jobs created

US jobs growth slows more than expected in July

American job growth falls short of expectations in July

This refutes the notion that the slower overall gain in jobs for the month reflected the impact of tariffs.

Hiring remained solid in most industries in July.

Construction boosted jobs by 19,000 following a 13,000 gain.

There have also been concerns that the trade tensions could dampen business confidence and lead companies to shelve spending and hiring plans.

This year's pickup comes after a steady economic recovery that has entered its tenth year and is now the second-longest on record. But Americans are optimistic about the economy, largely because of the many "we're hiring" signs seen across the nation. The White House has slapped tariffs on steel and aluminum and on $34 billion of imports from China, and several companies have hit US imports with retaliatory duties.

Companies say they are struggling to find workers, with job openings higher than the number of unemployed for the first time in decades.

"The important point is that there is no sign of overheating but that aggregate wages and salaries (jobs x hours x earnings) are growing at a brisk pace", Neil Dutta, the head of U.S. economics at Renaissance Macro, said in a note. Wage growth has been stuck around that level for two years.

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The retail sector also added 7,000 jobs, despite 32,000 jobs lost in sporting goods, hobby, book, music and toy stores.

The monthly jobs report showed unemployment declined to 3.9, down 0.1 percent from June.

"Job gains have been strong, on average, in recent months, and the unemployment rate has stayed low", the Fed said.

But the unemployment rate is an incomplete indicator, as it excludes people who didn't look for work in the past four weeks. Over the past year, it has hired more than a half-million Americans and stands as the leading job-creating sector. The unemployment rate had ticked up in June as the healthy jobs market attracted more workers back into the labor force.

"House price appreciation has exceeded wage growth for six years, so any signal that wage growth may be closing the gap is good news", said Fleming.

Homebuyers are encountering higher mortgage rates, one reason that the housing market has been faltering lately even as other economic indicators like hiring have remained strong, as evidenced by the upward revisions for May and June.

Stocks rose moderately after the report was released.

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