US job growth picked up last month as employers added 207,000 workers, a healthy gain that outstripped Wall Street expectations.
The unemployment rate held steady at the 5% reached in June, the Labor Department said.
While some economists had thought the report might be skewed by Hurricane Dennis, which battered Florida in mid-July, the department said the storm appeared to have no discernible impact on the data.
Overall, the report was a bit stronger than Wall Street analysts had expected. Economists had forecast a job gain of 183,000 with the jobless rate steady.
A net upward revision of 42,000 to the job growth figures for May and June contributed to the report's solid tone. US employers added 166,000 workers in June and 126,000 in May.
The factory sector, which shed 4,000 workers, was one of the only weak spots last month. However, the Labor Department noted that an 11,000 drop in car manufacturing jobs reflected larger than normal temporary plant shutdowns for annual retooling.
