US jobs market holds steady despite rate rises
Employment in the US held steady last month, raising hopes that the economy will avoid a painful downturn.
Employers added 187,000 jobs, similar to June, while the jobless rate dipped to 3.5%, from 3.6% in the prior month, the Labor Department said.
The report was the latest sign of economic resilience in the US in the face of the battle to stabilise prices.
The US central bank has raised interest rates sharply to try to rein in price inflation.
Hiring has slowed since last year, but economists say it has remained strong enough to absorb new entrants into the job market.
The 187,000 jobs added in July was fewer than analysts had expected. Manufacturing, transportation, tech and media firms shed jobs, while most other sectors expanded.
Economists have been anticipating a slowdown since last year, when the Federal Reserve began raising borrowing costs aggressively to slow prices that were rising at the fastest pace in four decades.
Inflation, the rate at which prices rise, has since dropped sharply, clocking in at 3% in June.
But Fed chairman Jerome Powell has said that policymakers want to see other signs that the economy is cooling, in order to feel confident that their efforts are working.
Analysts said this report is unlikely to settle that matter, pointing to wage gains that were stronger than expected.
The average hourly pay in July was 4.4% higher than a year ago, the Labor Department said.
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