US Labor Market Expected to Remain Resilient in July with Unchanged Unemployment Rate

The US labor market is expected to remain resilient in July, according to economists. The Labor Department's employment report on Friday will likely show job growth picked up after a slowdown in spring. The unemployment rate is forecasted to remain unchanged at 4.2%.

Estimates suggest nonfarm payrolls increased by 80,000 last month, below the average 111,000 monthly gains over the second quarter. However, this would still be above the roughly 20,000-50,000 jobs per month needed to keep up with growth in the working-age population.

Healthcare is expected to lead job growth in July, while a rebound in leisure and hospitality payrolls was anticipated after a significant drop in June. Annual wage growth is seen holding steady at 3.5%.