Employment growth in the United States slows in July

In the United States, job growth slowed, while wages rose slightly in July, which, combined with rising trade tensions between the United States and China, could lead the Federal Reserve to further reduce rates next month.

The US Department of Labor's report, closely followed, was released one day after President Donald Trump announced an additional 10% duty on Chinese imports, effective September 1, for the first time. worth $ 300 billion. .

The government said nonagricultural jobs had increased by 164,000 jobs last month. The number of jobs created by the economy in May and June decreased by 41,000 compared to the figures indicated above. Job growth in July is in line with economists' expectations. The average work week fell to its lowest level in two years.

July employment data indicate a slowdown in employment growth compared to an average of 223,000 jobs per month in 2018. Economists say it's unclear whether the slowing of employment is due to a drop in the demand for work or a shortage of skilled workers.

However, the pace of employment growth remains well above the level of about 100,000 jobs needed per month to keep pace with the growth of the working-age population. The unemployment rate remained unchanged at 3.7% in July.

Although the unemployment rate is the lowest in nearly 50 years, wage growth has remained moderate, contributing to low inflation, which could strengthen the justification for a further rate cut next month. . Average wages rose 8 cents or 0.3% in July, after increasing at the same pace in June. Increasing the annual wage increase from 3.1% in June to 3.2% in July.