U.S. hiring eases in July, remains healthy

But nearly all job gains came from service sector.

WASHINGTON — Hiring slowed modestly in July as construction and warehouse companies didn’t add many workers, but employers still say this is a “golden age” to get a job or ask for better pay and benefits.

What’s happening

The U.S. economy added 164,000 jobs in July, squarely in line with economists’ forecasts and marking 106 straight months of gains. The unemployment rate remained at 3.7%, near a half-century low, according to the Labor Department report released Friday.

Though hiring has cooled from last year, companies continue to bring on new employees at a healthy pace.

“An average of 140,000 jobs over the last few months isn’t terrible, but is a definite slowdown from the numbers we saw last year,” tweeted Martha Gimbel, research director at Indeed’s Hiring Lab.

Why it matters

Nearly all of the job gains last month came from the service sector, not blue-collar jobs, a notable change from 2018 that could be a sign President Donald Trump’s trade disputes are starting to bite certain industries.

Trump announced on Twitter this week that all Chinese imports will have a tariff on them by September, a sharp escalation of trade tensions that many retailers fear will cause the prices of popular items like smartphones, shoes and baby products to rise, discouraging consumer spending. But so far, the economy has remained resilient.

Health care and business are seeing large gains this year while manufacturing employment has been weak as the industry grapples with tariffs and slowing purchases from abroad.

In July, construction and warehousing had anemic hiring, and employment in primary metals, which includes steel and aluminum, declined.

Wage growth

The average hourly wage increased 3.2% in the past year, the Labor Department reported. That is well above the rate of inflation but below the level of wage growth that was seen at the end of the 1990s boom.

“Wage growth should be higher if the labor market were truly at full employment,” said Edward Al-Hussainy, a senior analyst at investment firm Columbia Threadneedle.

Economists have been surprised that wage growth has not picked up this year given how low the unemployment is.

“If you don’t like your job, this is a golden age to find a new one,” said Ian Siegel, chief executive of ZipRecruiter, an online jobs board.

MARIA ALEJANDRA CARDONA / NEW YORK TIMES Egypt Taylor labels food Thursday at a Miami restaurant. The July jobs report signals the labor market is keeping its energy.