US Job Growth Slows, Wages Hold Strong

The US economy added fewer jobs than expected in July, with nonfarm payrolls increasing by 187,000, but wage gains remained strong and the unemployment rate fell to 3.5%. Job gains in May and June were revised lower, potentially indicating a slowdown in labor demand. However, the moderation in hiring may also be due to companies struggling to find workers. Economists believe the Federal Reserve could achieve a "soft landing" for the economy, but inflation and the direction of the labor market will play a crucial role. Despite the slower job growth, wages continue to rise, outpacing inflation and supporting consumer spending.