US economy added 209,000 jobs in July, unemployment rate returned to 16-year low

The US economy added 209,000 jobs in July while the unemployment rate returned to a 16-year low of 4.3%, the Labor department said in a report Friday.

Economists had forecast that 180,000 jobs were created, according to Bloomberg. The pace of hiring in June was revised higher.

But neither of these was as pressing as the sluggish pace of wage growth, which moved in July roughly in line with expectations.

In theory, wages should be growing at a faster pace than this because the unemployment rate is so low, meaning that the supply of workers available for hire is limited.

However, Nomura's Lewis Alexander says wages are likely to stay low in this economic expansion relative to others partly because people aren't switching jobs as frequently as before.

16 PHOTOS
Fast Company's 2017 top companies
See Gallery
Fast Company's 2017 top companies
20. Illumination Entertainment -- For creating a monster out of a Minion

[Illustration: Ollanski]

To see the full list of the World's 50 Most Innovative Companies of 2017, visit Fast Company.

18. Buzzfeed -- For feeding a viral fever

[Illustration: Alexis Facca]

17. Airbnb -- For putting a world of experiences at our fingertips

[Photo: courtesy of Airbnb]

16-11. Dalian Wanda, Huawei, Electronics, BBK, Xiaomi, Tencent, Alibaba -- For ramping up the pace for the world

[Illustrations: Edel Rodriguez]

09. Chobani -- For stirring it up in the grocery store

[Photo: Jason Alden, Bloomberg via Getty Images]

08. Twilio -- For giving apps a voice

[Illustration: Jamie Cullen]

07. Netflix -- For making surfing fun again

[Illustration: Matt Rota]

06. Facebook -- “It’s creativity with technology,” says Facebook’s Sheryl Sandberg of the company’s efforts to develop ad products that drive sales

[Photo: Mark Mahaney]

04. Apple -- For baking in its advantages

[Illustration: Travis Coburn]

03. Uber -- For accelerating autonomous driving

[Illustration: courtesy of Uber]

HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

"Labor market turnover, an important driver of wage growth, has recently flattened, even as the unemployment rate has continued to fall," Alexander said in a preview.

Average hourly earnings increased by 0.3% month-on-month as forecast and rose 2.5% year-on-year (2.4% expected).

More to come ...

SEE ALSO: Wall Street is bracing for another debt-ceiling debacle
NOW WATCH: Wells Fargo Funds equity chief: Tech stocks are 'overvalued,' but you should still buy the

Read Full Story

Markets

DJIA 21,750.73 -274.14 -1.24%
NASDAQ 6,221.91 -123.19 -1.94%
S&P 500 2,430.01 -38.10 -1.54%
NIKKEI 225 19,470.41 -232.22 -1.18%
HANG SENG 27,047.57 -296.65 -1.08%
DAX 12,096.34 -107.12 -0.88%
USD (per EUR) 1.18 0.00 0.38%
USD (per CHF) 0.96 0.00 -0.11%
JPY (per USD) 109.05 -0.26 -0.24%
GBP (per USD) 1.29 0.00 0.29%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.