US job growth slows in July and Reuters wages rise

WASHINGTON (Reuters) – Employment growth slowed in the United States as wages grew at a moderate pace in July, which, combined with growing trade tensions between the United States and China, could lead to a further rate cut by the Federal Reserve next month,.

The US Labor Department's report, which was closely monitored, was released on Friday, a day after President Donald Trump announced a new 10% tariff on Chinese imports valued at $ 300 billion. dollars starting September 1st. Interest in September.

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 previously reported figures.

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 show 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 labor 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. The annual increase in wages rose from 3.1% in June to 3.2% in July.

(Prepared by Marwa Salam for publication in Arabic – edited by Abdel Moneim Darrar)