The US Labor Department reported on Friday in Washington that the unemployment rate in the United States decreased slightly from 4.2 percent in June to 4.1 percent in July. During the same period, the number of unemployed individuals dropped from 7.1 million to 6.9 million.
According to the department, US businesses shed approximately 23,000 jobs outside of the agricultural sector in July. Job losses were particularly pronounced in local government and retail trade, though job creation was noted within the healthcare sector. The number of long-term unemployed individuals stood at 1.8 million, down from 1.9 million in June.
These US labor market figures are closely watched by investors globally. If the job market is resilient while inflation remains high, the likelihood of interest rate cuts decreases. Nonetheless, stock market participants generally welcome such a scenario, partly because savings accounts would become less attractive compared to stocks, and businesses and other entities would gain easier access to cheaper credit.
