US employers added 114,000 jobs in July as unemployment jumped to 4.3%

U.S. hiring slowed substantially in July as employers added a disappointing 114,000 jobs amid historically high interest rates, persistent inflation, and growing household financial stress.

The Labour Department reported today that the unemployment rate rose from 4.1 per cent to 4.3 per cent, the highest since October 2021.

The rise, along with the pullback in payroll gains and slowing wage growth, is stoking recession fears and bolstering the Federal Reserve's case for cutting interest rates, possibly sharply, in September.