Payrolls continued to grow in the United States in July, but at a slower pace than the average monthly gains over the past year.

According to the latest estimates from the U.S. Bureau of Labor Statistics, nonfarm payrolls increased 114,000. The unemployment rate rose two-tenths of a point to 4.3 percent, the highest level since October 2021.

Payroll estimates and the jobless rate are based on separate surveys of businesses and households, respectively.

Initial estimates for payroll gains for the previous two months were revised downward a total of 29,000 to 216,000 for May and 179,000 for June. Based on the latest numbers, payrolls increased an average of 215,000 a month over the past year.

For July, 7.2 million people were counted among those unsuccessfully looking for work. Of those, 1.5 million have been out of work 27 weeks or longer.

Another 4.6 million people were counted among those working part-time because their hours were cut or they couldn’t find full-time positions.

The labor participation rate — the proportion of the population working or looking for work — edged up a tenth of a point to
62.7 percent. The rate has changed little over the past year.

Payroll gains for July were spread out among industry sectors. Employment increased 55,000 in health care, 25,000 in construction, 14,000 in transportation and warehousing and 9,000 in social assistance. Government payrolls increased 17,000. Employment decreased 20,000 in the information sector.

The average workweek for employees on nonfarm payrolls shortened a tenth of an hour to 34.2 hours. The manufacturing workweek shorten two-tenths of an hour to 39.9 hours.

Average hourly earnings rose 8 cents to $35.07. Over the past year, earnings increased 3.6 percent.