(via Reuters) According to the Labor Dept.’s July economic report, U.S. job growth slowed in July and the unemployment rate unexpectedly rose, pointing to a slack in the labor market that could give Federal Reserve room to keep interest rates low for a while.

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Although job growth was below expectations, July marked the sixth straight month employment expanded by more than 200,000, a signal of strength last seen in 1997. In addition, data for May and June was revised to show 15,000 more jobs created than previously reported. The one tenth of a percentage point increase in the unemployment rate to 6.2 percent came as more people entered the labor market, an indication of confidence in job prospects.

“It’s a goldilocks report for an economy that is steadily expanding but not lifting off. It will reinforce for now the Federal Reserve’s commitment to a gradualist policy approach,” said Mohamed El-Erian, chief economic advisor at Allianz in Newport Beach, California.

Continue reading at Reuters.com: “U.S. job growth cools, unemployment rate rises

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