BY PAUL WISEMAN AND CHRISTOPHER RUGABER
WASHINGTON (AP) — The U.S. economy suffered an unexpected setback in July as hiring fell sharply and the unemployment rate rose for the fourth straight month with raised interest rates taking a toll on businesses and households.
Employers added just 114,000 jobs in July — 35% fewer than expected — and unemployment, now at 4.3%, is the highest since October 2021, the Labor Department reported Friday.
“Things are deteriorating quickly,’’ said Julia Pollak, chief economist at ZipRecruiter.
The sharp downturn in U.S. hiring shook financial markets around the world. The Dow Jones Industrial Average dropped 610 points, or 1.5%. The S&P 500 tumbled 1.8%.
The sturdy U.S. economy has been a key driver of global economic growth and the U.S. jobs market has been the fuel, giving Americans the confidence and financial wherewithal to keep spending.
The unemployment rate’s jump to 4.3% in July
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