U.S. to Report on July Employment as Inflation and Fed Rate Hikes Hit Economy

The U.S. labor market likely cooled again in July, economists estimate, as the economy faltered under the weight of high inflation and Federal Reserve interest-rate increases to cool demand.

Employers are estimated to have created 258,000 jobs in July, with the unemployment rate staying steady at 3.6%, according to economists surveyed by The Wall Street Journal. That would mark a significant slowing of payroll growth in the first half of the year that was faster than during any other post-World War II period when the economy began contracting.