US hiring fell sharply in July, an unexpected setback for the economy stoking recession fears

AP Economics Writers

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 in a sign that higher interest rates may be taking a bigger toll on businesses and consumers. Friday’s report from the Labor Department showed that employers added just 114,000 jobs in July — far fewer than the 175,000 forecasters had expected — and that unemployment rose to 4.3%, highest since October 2021. The news shook financial markets around the world. The S&P 500 index ended Friday down 2%.