U.S. adds 157,000 jobs in July

The U.S. economy added 157,000 jobs in July, according to the Bureau of Labor Statistics, and the unemployment rate was 3.9 percent. This was the 94th consecutive month of job growth.

Although the total was lower than analysts’ consensus forecast of 190,000, it was a solid jobs report overall: The previous months’ totals were revised upward to 268,000 in May and 248,000 in June.

“Headline miss is a nonevent given prior month’s revisions,” Constance Hunter, chief economist at KPMG, noted on Twitter.

By category, the largest job gains were in professional and business services (up 51,000), manufacturing (up 37,000), and healthcare and social assistance (up 34,000). Construction employment also increased, up 19,000 in July and 308,000 in the past 12 months.

The average hourly earnings for all private nonfarm payrolls in July edged up by $0.07 to $27.05 per hour.

Although the Federal Open Market Committee did not increase the target federal funds rate at its most recent meeting, many expect two more interest rate hikes this year. Sustained job growth will be one of the key inputs as the Fed considers such a move.