U.S. economy adds 114,000 jobs in July, unemployment rate spikes

The U.S. economy added 114,000 jobs in July, while the unemployment rate rose to 4.3%, the Labor Department said on Friday.

Why it matters: The jobless rate kept moving higher in July, adding to fears that the labor market—the bedrock of the economy—is slowing down and the economy is at risk of a recession.

The unemployment rate, which was 4.1% in June, is the highest since 2021.

Between the lines: Hiring slowed in July from the prior month's downwardly revised 179,000 job gains.

The Labor Department said the economy added 29,000 fewer jobs than initially estimated in May and June.