US Labor Market Expected to Show Resilience in July

The US labor market is expected to show resilience in July, according to Reuters' survey of economists. Nonfarm payrolls likely increased by 80,000 last month after rising by 57,000 in June. The unemployment rate is forecast unchanged at 4.2%.

Economists said the labor market remains steady, with neither strong nor weak employment growth. Corporate profits are doing well, but there's no compelling reason for a breakout on the upside or downside.

Healthcare and leisure and hospitality sectors are expected to lead job growth in July. Annual wage growth is seen holding steady at 3.5%. The Federal Reserve may maintain its focus on inflation if the labor market remains stable, with some economists predicting a September interest rate hike.