Investing.com - The U.S. economy created fewer jobs in July, while the unemployment rate held steady and annual wage inflation ticked higher, according to official government data released on Friday.
Nonfarm payrolls (NFP) rose by 164,000 in July, in line with consensus expectations.
The jobless rate was unchanged at 3.7%, also in line with forecasts..
Wage inflation grew 3.2% on an annualized basis. Consensus had expected no change to the prior month’s 3.1% rise.
U.S. futures extended losses following the release with S&P 500 futures down 0.6% by 8:36 AM ET (12:37 GMT), having been down only 0.3% ahead of the report.
The U.S. dollar index, which measures the greenback against a basket of major currencies, extended losses slightly, down 0.2% at 97.98, compared to 98.02 ahead of the release.
The benchmark 10-year Treasury yield ticked slightly higher, quoting at 1.88%, compared to the prior 1.87%.
Employment growth has been softening in the U.S. labor market, but with the economy near full employment, the slowdown is likely due more to a lack of workers with the right skills for jobs, rather than weakening demand.
The importance of the job report centers on the implication for future rate cuts interest rates in the wake of hawkish remarks from Federal Reserve Chairman Jerome Powell earlier this week.
The report comes just two days after Fed policymakers lowered interest rates for the first time in a decade but disappointed investors - and President Donald Trump - by failing to signal a sustained series of cuts.