WASHINGTON (NEXSTAR) – Job growth in the U.S. slowed much more than expected during July and the unemployment rate ticked higher, fueling fears of a broader economic slowdown.
The U.S. Economy added 114,000 jobs in July, while the unemployment rate rose to 4.3 percent, much weaker than economists predicted.
"It has now risen nine tenths of one percent from the more than 50-year low," Mark Hamrick at Bankrate said.
The unemployment rate is now at its highest level since October 2021.
Mark Hamrick with Bankrate says people are worried that the economy is slowing more than expected.
"I think a caution light has been raised with respect to the future direction of the U.S. economy," Hamrick said.
Some of the industries that did increase hiring were healthcare, construction, and government.
"The real problem here is that in the past couple of months, we've had more jobs creation in government than might typically be the case," Hamrick said.
All eyes will be on the Federal Reserve's September meeting where economists expect an interest rate cut.
"I would think that a rate cut could be on the table," Jerome Powell, Chair of the Federal Reserve, said. He also said there are a lot of factors that will go into the decision.
"If inflation were to prove, you know, stickier and we were to see higher readings from inflation, disappointing readings, we would weigh that along with the other things."
Powell says the economy remains strong.
