Unemployment in US soars as fears grow Fed has left it too late to cut rates

Job growth in the US badly missed expectations in July and the unemployment rate jumped to the highest rate in almost three years.

Employers added 114,000 jobs last month, according to Labor Department data released Friday, far below the Dow Jones estimate of 185,000. 

The unemployment rate also edged higher to 4.3 percent - the highest level since October 2021. 

US stock futures fell Friday morning - rounding out a turbulent week - while Treasury yields plummeted, as the weak report stoked recession fears.

The cooling jobs market raises concerns that high interest rates are beginning to take a toll on the economy, after the Federal Reserve left benchmark borrowing costs unchanged yet again at a 23-year high at its latest meeting this week.

Job growth in the US badly missed expectations in July and the unemployment rate jumped to the highest rate in almost three years

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Global stock market meltdown as fears grow US economy will 'collapse'

The US economy had proven strong in the face of the Fed's aggressive rate hiking campaign to tame inflation, which saw the central bank raise rates 11 times in 2022 and 2023.

But the cracks may now be beginning to show, igniting concerns that the economy could fall into a recession.

Job gains fell markedly from June, where 179,000 jobs were added, and July's unemployment rate 

This month, average hourly wages rose just 3.6 percent in the year from July 2023.

This was the smallest year-over-year gain since May 2021. 

Despite Fed Chair Jerome Powell indicating that there could be an interest rate cut coming next month, some investors think the central bank should have made the move on Wednesday.

The market is now 'wondering if the Fed is too late in transitioning monetary policy,' Quincy Krosby, chief global strategist at LPL Financial told CNBC. 

This is a breaking news story. Updates to come.