The U.S. economy added 96,000 new jobs in July, according to preliminary data from the U.S. Department of Labor, and the official unemployment rate fell to 8.1%. It was 8.3% the previous month.
Various forecasts had pegged August new job creation at anywhere from 70,000 to 150,000.
Economists say the economy must create at least 150,000 new jobs each month just to keep up with changes in the labor market, and it must create about 250,000 to quickly bring down the unemployment rate. The official unemployment rate has been above 8% for 42 consecutive months.
The unemployment rate fell last month in part because the labor force participation rate dropped. An estimated 368,000 people gave up looking for work in August, and the workforce participation rate now stands at 63.5%, which represents a 30-year low.
