Financial News

  • 4 August 2014, 9:30

US Unemployment Rate Ticks Up To 6.2% In July

The US economy has generated 209,000 new jobs in July, fewer than expected even as the upward trend remains steady.

The unemployment rate ticked up to 6.2% from 6.1% as more Americans started looking for work.

The figure for July was well below the 298,000 surge reported for June.

However, July also marked the sixth straight month that employment has expanded by more than 200,000 jobs, a stretch last seen in 1997.

The cooling in hiring is unlikely to change perceptions about strong economic growth in the third quarter.

The economy grew at a 4% annual pace in the second quarter after shrinking at a 2.1% rate in the first three months of year.

While restocking by businesses lifted the figure, growth is seen remaining sturdy for the rest of 2014.

The employment report is closely watched by financial markets around the globe.

It is set to garner even more attention in the months ahead, as investors seek to gauge when the Fed is likely to raise benchmark interest rates from near zero, where they have been since December 2008.

Job gains were broad-based in July.

Services industries employment accounted for the bulk of the gains, adding 140,000 positions. That compared to 232,000 jobs in June.

Manufacturing payrolls increased for the 12th month in a row, adding 28,000 jobs in July.

Construction jobs advanced for the seventh consecutive month, with July payrolls rising 22,000. Government employment increased by 11,000 jobs.

 

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