The 187,000 net change in total employment and a 3.5% unemployment rate in July show cooling demand by firms as the economy grows near its 1.8% long-term trend.
The Federal Reserve increased its policy rate by 75 basis points on Wednesday to a range between 3.75% and 4% as it hinted at slowing the pace of its hikes.
The RSM US Manufacturing Outlook Index declined into negative terrain in May, signaling the impact of high inflation, rising interest rates, the lockdowns in China and the war in Ukraine.