WASHINGTON (NEWSnet/AP) — U.S. employers added 187,000 jobs last month, which is fewer than expected because of lingering high interest rates.

But the unemployment rate dipped to 3.5% in a sign that the overall job market remains strong.

Hiring was up from 185,000 in June, a number that the Labor Department revised down from an originally reported 209,000. Economists had expected to see 200,000 new jobs in July.

This is still considered a solid number, considering that the Federal Reserve has raised its benchmark interest rate 11 times since March 2022. Because more Americans entered the job market last month, pressure is easing on employers to raise wages to attract and keep staff.

Unemployment fell as 152,000 Americans entered the job force. The number of unemployed fell by 116,000.

Despite the influx of workers, average hourly wages rose 0.4% from June and 4.4% from a year earlier – numbers that were hotter than expected and are likely to worry the Fed.

The U.S. economy and job market have repeatedly defied predictions of an impending recession. Increasingly, economists are expressing confidence that inflation fighters at the Federal Reserve can pull off a rare “soft landing’’ – raising interest rates just enough to rein in rising prices without tipping the economy into recession.

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