The unemployment rate unexpectedly jumped in July, climbing to 4.3% from 4.1%.
US nonfarm payrolls also came in light, with the economy adding 114,000, missing the consensus expectation of 176,000. The Bureau of Labor Statistics also revised May and June job additions lower.
The weak report all but confirms the Federal Reserve will cut interest rates in September, an outcome that was already carrying a near-100% probability heading into the report.
Stock futures slid following the jobs report.
Wage growth slowed in July with a 3.6% year-over-year increase, following a 3.8% year-over-year increase in June.
Employment in the healthcare sector increased by 55,000 from June to July. Employment in the leisure and hospitality industry rose by 23,000, and employment rose by 25,000 in the construction. The information sector saw employment drop by 20,000.
Amid the rising unemployment rate, the overall labor force participation rate rose from 62.6% in June to 62.7% in July. The prime-age rate, or those aged 25-54, rose …