US job creation slows to 164,000

WASHINGTON: The United States continued to add new jobs last month but at a slower pace, another sign the economy is weakening, while the jobless rate held steady, the government reported Friday.

The weaker result, which came with a sharp downward revision for June, confirmed labor markets have cooled this year from their breakneck pace in 2018. The slowdown raises the prospect that President Donald Trump’s record as a job creator could wane as

next year’s elections approach.

US employers added a net 164,000 workers in July, still fairly solid and largely in line with expectations. The jobless rate was unchanged at 3.7 percent, the Labor Department reported. But the job gain in June was revised down to 193,000, far slower than the 224,000 originally reported-bringing the average over the last three months to 140,000, well below the average of 223,000 recorded in all of last year, according to the new data.

Wages rose 3.2 percent, year on year, more than keeping pace with inflation as the supply of available workers fell, squeezing employers seeking to attract and retain talent. Despite the slowdown in job creation,

the pace was more than enough to keep the jobless rate trending lower. It has been below four percent for 15 months. The labor force grew slightly even though the unemployment rate was unchanged, suggesting new job seekers who came off the sidelines easily found work. More rate cuts?

The weaker jobs report comes as the Federal Reserve faces stinging criticism over its decision to cut interest rates this week in the face of generally sound economic data. Fed Chairman Jerome Powell has said clouds gathering on the horizon-Trump’s trench warfare with trade partners and the world’s slowing economy-justified a preemptive strike.