Employers added 162,000 workers in July, and the U.S. unemployment rate slipped to 7.4 percent, the lowest level since December 2008, the Labor Department said Friday.
But while the number of jobs did increase, the hiring pace was slower than in the spring, marking a setback for unemployed Americans who had hoped for a better summer.
"The labor market begins the second half of 2013 with a fizzle," economist Heidi Shierholz, with the Economic Policy Institute, says in her analysis of the data. "At this rate, it would take six years to ... get back to health in the labor market."
Over the past year, the economy has added an average of 189,000 jobs per month. As jobs have grown, the jobless rate has dropped from 8.2 percent one year ago. In June, the rate was 7.6 percent.
To some extent, the falling unemployment rate also reflects a workforce that is shrinking as baby boomers retire and young people stay in college longer. Also, some people are staying home with children or elderly parents, and millions have stopped applying for jobs because they think it's hopeless. When fewer people seek work, then the unemployment rate looks smaller.
Another labor market measure that has been getting smaller is paychecks. The July report showed average hourly earnings slipped by 2 cents to $23.98. Over the past year, hourly earnings have risen only 1.9 percent. That's about the same rate of increase as consumer prices.
On 'Tell Me More'
NPR's Marilyn Geewax speaks with host Michel Martin about the latest jobs numbers.