The U.S. economy added just 114,000 jobs in July, marking one of the worst months for hiring in recent years, according to new employment data released Friday by the Bureau of Labor Statistics.
Meanwhile, the unemployment rate ticked up to 4.3%, the highest it has been since October 2021. In historical terms, a 4.3% unemployment rate is low, but it comes after a period of near-record-low unemployment. The unemployment rate bottomed at 3.4% in 2023.
Although July was not as good of a month for hiring, the U.S. has had a solid year of job gains. In the last decade, the U.S. averaged about 166,000 new jobs per month. In the last 12 months, the U.S. has averaged 212,000 new jobs per month, bringing the total number of U.S. non-farm jobs to 158.8 million.
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Average hourly wages increased 8 cents in July to $35.07. Workers are making an average of $1.23 more than a year ago. Average weekly wages were $1,199 in July, up from $1,161 a year ago. The 3.3% increase in wages is slightly outpacing inflation. As of June, the consumer price index was up 3% compared to a year earlier.
While overall employment figures remain strong, not all Americans say they are reaping the benefits. Polling from Gallup found that 46% of Americans believed the state of the economy was “poor” during the month of July, compared to 3% who said it was “excellent,” 19% who said it was “good” and 32% who said it was “only fair.” Additionally, 70% of Americans said the economy was worsening in July, while 24% said it was improving.
One potential reason Americans say the economy is getting worse is that many Americans are encountering higher levels of debt. Officials said earlier this year that credit card debt has been increasing at alarming rates, as more Americans have become delinquent on their debt.
